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for Management Fee l 




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17 — Jo 


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No. 28,775 


PUBLISHED IN LONDON |A$I D .* FRAJ4-K FLT^T 

i S ' : v 

Monday May 


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NEWS SUMMARY 


GENERAL 


BUSINESS 


Lebanon BNOC ES Falkland 


invasion 


to resist 
oil price 



more 


recede 


BY MARGARET VAN HATTEM, POLITICAL STAFF 


growing rises 


... Fears oF an Israeli invasion of • BRITISH NATIONAL Oil United Nations proposals, and 
southern Lebanon are growing, corporation is likely to resist in particular of the chances of 
Troops " concentrated- on the PTessure for a rise in North getting a clear nad binding 
> border have been put on alert ** ea ° l * f' T1 SS s . Mxl: mon Mv reply, are so strong that the 
and Israeli jets . flew over Beirut. V®® 1 ? 5 * oi Nigerian compete -British Government has held 
'• These moves followed a series despite traders' datbiff yack -from giving a categoric 

of Israeli Cabinet threap that t “ a * producers are seUing: reply. 

Israel would net allow at a discounL Back Page - sir. Anthony Parsons, Britain's 
Palestinian guerrillas ' • to . F ccn ninnninir * nrnrtni . Ambassador to.the UN. returns 
endanger the lives of its Jhrj??deal nnie?' wSfch i£ ITCH)' ** New. York this morning to 
- aTLZens - Dll mS drives Would beniS resume negotiations. It was 

Zaire's decision to restore ? or work comDlSed rather SSn Stressed in Whitehall yesterday 

diplomatic relations' with Israel ££ rime sSfat-wSBack to* the Government is still 

has sparked a wave of protest 2L?“ e P6 t ^ Bac * trying hard to negotiate a settle- 

fmlYl Arih JTilfie miinf hut oleA - that it mrnMic 


rHE GOVERNMENT intends to stance if the Argentines do not radio, appears fo have caused ■ cerned. The ambigbity of the ^ 
intensify pressure on the Argen- match some of the concessions some embarrassment in Govern- comment, however, leaves open. 

tine Junta over the next few implicitly on offer in recent meat circles, where the policy the possibility of --differences ... ~ci lj, BM n 

days, with more raids on the- weeks was reinforced yesterday - that sovereignly is negotiable within the Cabinet oh this point. BY K. ICSHARMA IN NEW MLHI AND PAULCHEESErIGHT 

Port Stagey area, as hopes of when Mr John Note the is still upheld. In view of increasing pressure »N LONDON 

concluding a diplomatic settle- Defence. Secretary, said he did- - It is not clear whether Mr fora the Right-wins of the Tory 

tbe Falklands crisis not; envisage Argentina eve# Nott meant that he considered Party against any concessions to DAVY McKee, . part of the 

ebb further away. having sovereignty over thb Argentine sovereignty unlikely, the Argentines, which could be Davy Corporation, will seek to 

Doubts m London over the Islands. .or that it was not an option as regarded as a sell out. the Gov- negotiate the sale of equipment 

Argentine response to the latest This comment, -made on BBC- far as the Government was con- ernment anneals determined not and services to India for a 1.5m-. 


Davy still seeks 
link with Indian 
steel contract 


1U1U lilt "IU6 u*. , 

Party against any concessions to Davy McKee, . part or the 


ARGENTINA DRAFTS REPLY 


from Arab nations. 


trying hard lo negotiate a settle- 
ment, but also- that it suspects 


ARGENTINA YESTERDAY 
drafted its final reply to the 
United Nations 'peace initia- 
tive on the Falklands crisis 
as Argentine newspapers 
-warned that a bloody battle 
over the Islands might be 
imminent. 

The so-called . ** Malvinas 
group.” headed by Foreign 
Minister ..Njcanor Costa 
Mendez, met to put the last 
touches to Argentina's reply 
to Sr Javier Pftrez de Cuellar, 
the UN Secretary-General, 
who has ' been trying to 
arrange a South Atlantic 
ceasefire. - 


In Sidon. Lebanon, three # D-MARK was the strongest 11,6 Argentines of playing for Mendez, met to 

people were killed in ' gun member of the 1 European time and is not prepared to tonebes to Argei 

batties between leftist guerrillas Monetary System for most of allow more than a few days to Sr Javier Pere 

and Palestinians. Page 3 ' last week. It. fell slightly below before, undertaking more drastic the UN Seere 

the Danish krone on Monday, military action. who has been 

£1 ,3m ransom ' but returned to the top position Speculation that the Govern- arrange a Son 
... on. Tuesday; Germain interest ment may harden its negotiating ceasefire. 

Turin businessman Paolo rales were generally steady „ 

Alessio, 56, has been freed by after the cut in the Btindesbank ; 

kidnappers following payment Lombard rate , the previous L < T • £ M 

of a £l-3m ransom by his W eek. ' The lira remained the / IflVOClATI- • I 1 ST £\ 

family. In West Germany, an weakest EMSr currency, below / I II f /] k N|l f ^1 IlflVC 

eight-year-old girl, kidnapped in the Belgian franc, which con- * w m-k/avaa 

December, was freed after -her tinned to suffer, from specu- ¥). 

German banker father paid a lative pressure. ", Euro Belgian q. v * y B^KHSET BLOOM, DEFENCE CORRESPONDENT 
£358,000 ransom. franc rates rose sharply around 5/“ . • • - 

_ <t ' . . l J ie r of ; the week to ORDERS TO step up military 

Greece surprised «*•*«<* the -curacy against pressure on the beleaguered < 

Greece has . been surprised by TtST* prSSre ^SMtine garrisoTi on the Falfc- 

U.S. Secretxryof sSte/Ale* ffiSf-Sk' 

“ft gJa?S£ia? k « f £ 5 U m hiS 


While President Leopoldo 
Gallieri said yesterday he 
expected “ some kind of 
rapprochement ” with Britain 
in the next few days the lone 
of his statement in an inter- 
view with Mexican television 
was tough. He warned that 
Argentina was ready to fight 
off any British invasion of the 
islands. 

The daily Buenos Aires 
newspaper,. Clarin, said yes- 
terday the stage seemed set 
for "the harshest and most 
dramatic battles in defence 
of the archipelago.” 


ernment appears determined not an d services to India for a l.5m-. 
P* move an inch further until tonnes-a-year steel plant in 
it. has watertight gnaantees that- Orissa, despite the weekend loss 
the Argentines will withdraw of Us position as consortium 
from the Islands on' the under- leader for construction of the 
standing that sovereignty is yet £l-5bn project. 



to be negotiated. 

: The outstanding difficulties. 


“ Thrre is still a major rnic 
for Davy to play," Sir John 


aSRKTJ 

•asM* ; 




* according to Whitehall, concern Buckley, the group chairman, 
the securing of. binding “dd yesterday. "It could still 
guarantees from the Argentines work out that we do as much 
to a withdrawal of all "military as we originally planned to do." 
and civilian personnel; agree- Failure to win the construction 
ment on some form of interim contract would not have a major 
administration, in which-Rritain effect on Davy's fortunes, he 
insists; the Falklanders’ instila- added. 

tions should be represented; and During the weekend, the 
categoric Argentine acceptance Indian Government revoked a 
that there should be no pre- letter of intent, granted tn Davy 
Con tinned on Back Fage Iasi September, for turnkey 
Falklands crisis, Page 2; EdJ- construction-providing a com- 
‘ torial Comment, Page 14 P leled < 3lanl read - v 10 °P erate - 








The breakdown in negotia- Sir John Buckley 

tinns occurred when Davy and 

“Tn ?°^Tn l ri/. aU fnf with British companies. Sir 

i!!urin? C an n f °t " John hopes that the possibility 

lowing an Indian decision to f these mieht emeree “in a 
change the site of the plant and ?L, * • R 

its mix of products. cei ' s " 

ir>u u The package covered a fixed- 

a th Rritf?J d rfte? price contract vath no provision 

i Bnta «I* s for cost overruns, according to 

Si lnJian official. But Davy's 

rSaKS vSlimiS revised ' estimate for the plant 
Bmish System X telecommi ni- came fo ovcr f 2 i,n. a figure 

2£«» e r a “ ipment t we , re f0 ? led which the Indian Government 

oTj&SS ^f C0 F™™. We0t 10 did ' h “ ; ™ ^ 3lified - . 

The Indian move is also an According to the 
embarrassment for the UK Kroup, the increase arose be- 
Government. A succession of rause of a change in the-concept 
ministers, from Mrs Margaret a JJ d 

Thatcher downwards, has sup- JJJJ* 

nnYtarl 4L n n_ irv ‘ Kiel i n frOITl PSTAQip, OH Iil0 Ul3Sl ( tO 

Daitari. 120 miles inland. Davy 
i h the India D* Government. was re i uelanl lq commit itself 

But the steel and telecom- t0 a fixed-price contract on a 
mum cations failures were par- new s j le W hich needed extensive 
t tally offset by the signing oi a survey. 


Invasion ‘likely to be withheld’ 


PEBBLE ISLAND 


meeting between President changed, as did most other 
Reagan and.. Greek Premier currencies. 

Andreas Papandreou has been - - • ' : 

planned for next month’s- Nato - nao u' ffl MM 
summit, in Bdnn. Page S tfflo 

Aircraft scare 

An Alitalia captain reported an z% ~' , ; ' . “ 

explosion close to his aucraft ■ briQ . BBS* 

while flying over southern Italy,* l<-\ BBB — 

where Nato manoeuvres were . ' 

taking place. -4n investigation • o • . M ll.fu 1 . . 

is to be head. ^ ■■y f -- "J: .• • B ' • x f J ‘ ‘ 

The Wife of a former Northern 

Ireland police chief. May . ■ • ECU divbcbke i ll 
Bradley, was injured by . a booby .+ _ • -i — 

trap bomb when she opened the — \ {~|f7f7]C3HB j 
front door of her Belfast home. - 0 1; J || {■j^i [jQ® j — 

Nazis /brought in*' . ~ 

Several hundred Eastern Euro- 5% - ^ i. a > ~ 

pean Nazis and collaborators '• 

were smuggled into the U.S. ’ ^ 

after the Second World War, To* ' " • 1 ' 1 1 • . . 


cauntB - .- 


: .smnmuT .... mm 

^■WETOfli WEBTMw«l 


ECU nv 


1VU ' 

•astfr. 


ever, the signal to invade will wstwihi i 

be withheld pending outcome 

of the peace initiative at the (West Falkland 

United -Nations. Vicv Su con 

• The^ military action ordered * imcwEt^ r-.. 

is likely : to follow the pattern iswaumud Vv 

at the weekend When Royal ■*? ■ 

Marine commandos landed on w 

Pebble Island. . destroying 11. ... dr<r • j 

Hght airertifL Sea Harriers from sranmiT ... mm r 

the aircraft-carriers Hgrmes and 

jjBvintible ^ also mounted two 

more~ hoabing raid? bn the ; ..ij • . * 

Jsladd's main airport at Stanley. -Mimpififei ; 'V ' V - ' f 

The weritend action and any - * 

following in the next few days * spanwnii 

will, have the dual purpose of * * J 

harassing • the Argentine ^ 

garrison qp the islands and of ^ SrttlWReiltS ,* " 

securing the air and sea 
blockade in the 300-inile total 

exclusion zone around the . • ........ 

Faiklands.establi-Aed more than task force arrived, was a raid : destroyed, 
two weeks ago. not 3,1 invasion. suffered t 

Mr John Nort. the Defence Full details are still not avail- Firing wa; 


rm &N mj ^ 



jj£gsamm*M 

^wJOMSOWaUBttlR 


Bflnausi 

Jf'V 






0*uauEEi< 


IWISIWB0BT 


Sj-hoii>u| Sound 


British 


★ SettlBnients 



contract, also at the weekend, 
for Northern Engineering 
Industries to construct a 
£2.31 Jam thermal nower station. 


This is partly corroborated by 
the Indian side. It is said that 
Davy became unwilling to take 


East 

Falkland 


A - ftVrthe^ contract to cover the 

development nF a related coal- J 1 / £? r "JSf 

r; t ,v projm is expef,ed "™”n jrr . a "l c To s .«id r ss 

The* Indian nim.nl Mill 1??-^ j? '5 d ! pmfnt cos,s 


rne mman unvernmcm sun %. v n cr cent 

intends to buHd the Orissa ' “ P J percent, 
plant, but it will seek maximum . The selbac* to the construe- 


two weeks ago. 

Mr John Nort, the Defence 


Secretary said, yesterday . the able. It appears, however, that from Falkland Islanders’ homes. 


destroyed. Tile task force perhaps include the two largest, use of Inc 
suffered two minor casualties, both. -on East Falkland, Hill Cove equipment. 
Firing was said to be well away and Chartres. • - provided ft 

from Falkland Islanders’ homes. • Radar units on the islands: will be put 


use of Indian contractors and «ton of Ibe Orirsa plant is likely 
equinmont. What cannot be 1° J ead J? a review of the 


What happens on tbe military These Admiral John Woodward, tender. 


provided from domestic sources Indian policy of av/arding turn- 
wili he put out to international * e -'. P r °]>cis to foreign com- 


were smuggled into tho U.S. * [ | Government believed the 50 Royal Marine commandos What happens on tbe military These Admiral John Woodward, tender. 

after the Second World War, To* ^ • 1 blockade was effective and that ., were landed on tbe island and front in ihe next few days will task-force commander believes In London it is noted that 

help with anti-Soviet inteilig- ■ 7h ® ehan - ,ha . T"° cohsuainu ^ ranit force’s softening-up after trekking seven hours over depend partly on the deteriorat- the Argentines are strll- able to the oricinal financial package, 
ence, a U.S. television pro- u'Sm/mX process was undermining the rough country were in position ing weather. The task force, operate, to pinpoint the Royal put together to support the 

gramme claimed. weakest currmc/ m *yst*m dtHna* morale' of the Argentine to attack the airstrip area. The however, will have four key Navy for Argentine attack, as Davy bid. remains in place, and 


Q< j cr panies provided they come with 

In London it is noted that » llr “ li ™ i!n:,rl ' i '’ 1 P^Hases. 
p original financial package. The inclusion of £200m of UK 


Schild evidence 


weakest currency in cA« xyscem d«Hnas 
zfw cross rasas from which no currency 
I accept tho Ihb) may move more than 
HU per cent. The lower^ chert gives 
'each currency's divergence from- the 


Defence Ministry task-force ship. 


Rolf Schild and his family, " central >jw " egaina the European emphasised at the weekend that Klevt 

victims of a kidnapping in ^ l n ‘^ it J r f^i x r,san ■ b * tkM the Pebble Island action, though include 

Sardinia, in 1979. wili. testify Ew* n .»«■"««: ... jt invo]ved ^ ^ acknow . insurge 

against, their alelged abductors ^ BRITISH INSURANCE Asso- ledged British landings since the Skyvan 

in - London, following their ciation dropped pdans for a . . 


at Pebble Island: These exist at • Stanley airport: The task l package is^ made up of export intent in the face of a lower bid 


Eleven Argentine aircraft, many of the Islanders' settle- force will want to deny use of credits at 7.75 ne^- cent, a Euro- from a consortium 
eluding six small counter- ments on East and West Falk- this to the Argentine garrison, currency loan and aid funds. Mannesmann Demag 


against, their alelged abductors a BRITISH INSURANCE Asso- 
in London, following their elation dropped pdans for a 
refusal to return to the island, multi-million pound promo- 
tional - campaign because of 
Asylum gFS&nted insurance companies’ opposi- 

Thirteen leftists, who occupied tlon " ® ac ^ 
ihe - Brazilian embassy in 


the Pebble Island action, though including six small counter- ments on East and West Falk- this to the Argentine garrison, 
it involved the first acknow- insurgency Pucara and a light land. . Several are believed to • Military supplies and com- 


Al least part of this could still Germany. 


led by 
of West 


transporter, were be used by the Argentines and Continued on Back Page | be used if orders are placed 


Background, Page 4 


British Telecom expansion plan 


Guatemala, have, been granted instituted management system 
political asylum in Mexico. will be the subject- o£«a protest 

^ by a group of 'members al next 

Holiday Offers month’s annual meeting. Page 5 

Tour operators and travel * -ASSOCIATION of Profes- 


CHARTERED Accountants . BY. GUY D€ JONQUIERES 


will be the subject- o£«a protest THE GOVERNMENT is con- make an effort in the next few sector should have free rein to 

bv a "rbun of "members, al next ridering plans for restructuring weeks To persuade the union’s lay cable systems. 

JhmiaI Paeo s British Telecom; freeing the leaders to change their minds. jfr Jenbfn is understood. 


9 . ■ organisation to develop into a One incentive which he may however, to agree with the 

Tour operators and travel .g ASSOCIATION of -Profes- major force in the computer nnd offer is the possibility that the British Telecom view that such 

agents are forecasting a spate s j on aj Executives Clerical. and communications industries in union would be consulted an approach could lead to un- 

of price cuts as. their peak cjompiuer Staff, whose member- the tJK and overseas. regularly on business strategy, necessary duplication of cable 

season nears.- with' many holi- sfu -p fi as dropped sharply The proposals, backed by Mr Last week, British Telecom systems ana the development of 

days unsold. Page 6 because of redundancies, voted Patrick Jenkin. the Industry submitted a report to the Gov- technically incompatible net- 

_ .. j. at its annual conference to Secretary, would enable British ernment arguing strongly ‘ that works. 

Brazil SWIten press ahead with amalgamation Telecom to expand substantially the organisation should be -given Mr Jenkin is also considering 

. ■ n,.. v ;i- bntinitiae ncarall nocnnngihilitv fnr lavinn nrnnn^n Is whirh VVOilid allow 



Mr Jenkin is also considering 


WHEN 
MUON FRIE 
REGAINS RARAD9SE 
IT'LL BE ON THE M4 


month * Gulf war. A Gulf Co- ^ commnihications services, 

operation Council -meeting, in- ments. Page 5 .. The plan also includes pro- 

KuwaiT, was broken off in -a 0 PLAYBOY ENTERPRISES 
move to reach Arab unity over Josl 522.6m in the first quarter J?*® r 
the war. Page 3 compared with a net profit of J 1 *" °* ■ 


vices and video communications, factories, taking over existing 
British Telecom claims that companies or entering joint 


Briefly - . - 


Swlndbfi 


compared 
52.7m las 


CHRISTIAN ROVSING, a 


A £5m feature film is to be made Danish computer company, has Government -imposes, 


and relaxing tbe tight restrie- television networks in different ot larger u.s. independent mic- 
tions. on financing which the parts of the country. It suggests phone companies. like General 


a w” ^ «2s "s-jssrs.® » ° r * Iarse . : e,eB,,oD 


raised £3m in London with a . However, the fate of the plan Y ate 


laying cable on behalf of pri- Tefephone and Electronics, 
vate operators and recouping its which have a vertically- 


Istanbul. 


a Danish, company. Page 16 


manufacture as well as the 
m pro- operating of a large telephone 
contrast network. 

c of the The Government believes that 


CONTENTS 


Civil .Service unions: the Lombard: vet another 
Left reaps a harvest .,. 14 Ministry, by Samuel 

IMF and Comecon: IMF; Bnttan \ 

challenge from the East 15 Justinian: uncertainty over 
Feature: BR comes to those accused’s assets S 


** 16 SSon S?ISs TSidS industrial lo the recommendations of the TheGovcrnmcn believes that 

— rSe for Britisb Telecom, vet is Prime Minister's Information if Brush Telecom were 

• : JSSnS- o?pSed to 1 any privati- Technology Advisory P*nel allowed 10 develop in this way. 

another SSSSr • . OTAP). In a recent , report, it could prove a formidable 

Samuel Sr -Jenkin is expected to ITAP argued that tbe private competitor 




Traders bank on a deal of fun 


who wait 


Editorial comment: 


Technology: European Canadiffi conundrum; the „ _ COCKTAILS are kets. The fall-off in foreign- once), and for the husbands 

study on solar cells ...... 9 Falklands 14 be mtodin the exchange profits just reported of the growing number of 


BY DAVID MARSH 


Management: why employ- 
ees are reluctant to be 
moved Survey: 


that be mixed in the exchange profits just reponeu 01 uie growing uu*u*>*c m 
^ StSnational by S 7 U.S. banks, caused female foreign exchange 

SSeSxchange trading is ex- mainly by calmer currency con- dealers, and ; any amount of 
to TSt in a ditions over the past few wining and dining. 

2S ton nirrenev months, is however, hardly Serving up the serious shiff 


... - 3IT3 tarhrit in a drtioM over riie past few wining and dining. 

moved Surveys. ? 8 as ld 2J)00 currency months is however, hardly Serving up the serious stuff 

Building: contracts for rail- .Turkey - (inset) Therefrom around the world expected to- disturb die bra- will be Herr KartOrtoPoehl 

work in the UK and * ■. 2Sff toLoSSu wiih gnest hommie. Generally they will the Bundesbank .president. He 

- 8 Swansea 10, 11 m £d ™ be having just a good time. will deliver a presentation after 

HOng K ° ng - — ^l^ th^West Gercnan underMntog tot. tad« ,« 

13 int. Cab- 17 Aacinfl I....... b Bundesbank, for.the'n: annual, a bit Sf **}*** fnThe cT^of ‘ London. 1 


Arts 

Appontmonts UK 
Intaniational ... 

BaM ftatw 

BlriMing Notes ... 

Bus'man’s Diary ... 


tnt. Cap. Market* 17 Raona ... 
IntL Co. Nows ... - 18 Share Mntc 
I** 26 T ochmtogy 


17 flarina 8 

- is Share Information^, 2S Jojees-up. 


roll over exposures and hedging 


gathering. 


The soaring overheads of 
„ staying in London make 
- Swindon seem like paradise 
indeed. 

With rents and rates a 
fraction of the capital’s, 
5windon is an automatic 
choice for relocation. 

London 50 minutes by 
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premises and sites ready today. 

No wonder such companies as Hambro Life, 

Lownes Lambert, W. H. Smith, Plessey, ^ 

■Monsanto and Burmah Oil - among a 

250 others - have chosen Swindon. 

Get the full fads from 
Douglas Smith, Industrial 

Adviser, Civic Offices, mw 

Swindon. 

Tet (0793) 26161 ^ 

or Telex: 444548 ^ 


16 Labour 

iStS&uEC. is Lomtart 16 « tS will assemble from Thurs- RoyaIF«tival Hall. It will star munity j et s down its .hair This 

crwSwort - •••• « 5S*a Btr-- ?? SpIS sSC'jwii' . 20 day for the gathering of the Mr Adler. year’s meeting is biager than 

Emanate. Gwd® Ex«hnoW * 22 World Trad* * International Fores Association. There are also a visit to ever. One sour note will intrude 

gsy tr 1 l "Sf L SSS m n It Wtil give' dealers a chance Hever Castle. Kent, a day-ttip -the handful of delegates from 

.w^r ' w . • to devSimems on to Brighton for wives and girl- Argentina « not expected to 

Eo& l&test' Share Index phone 01-246 8026 forfiign-^xdmnge and credit mar* friends (though not both, at turn up. 


7 TV and Radio 

14 UK Itew* 

Iff Unit Trusts ' 


I . The dealers are from banks teehniqu^hey irall be traditionally results in thin and 

5.J in 50 countries as diverse as » » erratic trading on foreign ex. 




Euromarket* ...... 

Financial Diary.. 

Insurance 


17 -Monwfr Exchnna- *. -22 World Trade 4 

J9. -tivarsaas .News' ...' i 3 ANNUAL STATg aafr 
• ff. «rt»m*iteiy.D*W W .Lambert Htrwartb IB 


latest- Share ■ Index phone. 01-246 8026 











Financial TimesMoncte^]^ 


THE FALKLANDS CRISIS 



Galtieri adopts British shift stance on withdrawal and administration 


ough stand 


BY PETER RtDDEU, POLITICAL EDITOR 


oyer islands 


BY HUGH O’SHAUGHNESSY AND JIMMY BURNS IN BUENOS AIRES 


PRESIDENT LEOPOLDO GAL- 
TIER I f.f Argentina has given 
no signs of being ready to make 
any fundamental diplomatic 
concessions to Britain as the 
current peace efforts by the 
United Nations draw to an end. 

Argentina's furmal reply to 
UN Secretary-General Javier 
Perez tie Cuellar's pbn for a 
ceasefire in the South Atlantic 
is expected to be handed over 
by Ambassador Enrique Ros in 
New York when Sir Anthony 
Parsons, the British envoy to 
the UN, arrives back in New 
York from London with 
Britain's reply. 


the UN negotiations involve 
Britain's insistence that the 
Royal Navy be allowed to 
approach up to 200 miles from 
the Fai Wands after any with- 
drawal of Argentine and British 
forces from the area of conflict. 


The Brtish are said to see 
that as essential, if Britain is 
to counter the; advantage of 
Argentina's geographical proxi- 
mity to the Falklands. Britain 
and Argentina are also said to 
disagree on the role of the Falk- 
landers in any transitional 
administration. 


Contrasted 


Gen Galtieri adopted a tough 
stand in an interview with 
Mexican television on Saturday, 
which contrasted with a much 
more flexible attitude in 
another interview with Peru- 
vian television the previous 
night. 


Present plans call for a UN 
administrator to be assisted by 
an Argentine and British 
official. Britain is said to want 
the Faiklanders' present island 
council to continue in being, 
while Argentina seeks some 
representation for the small 

number of Argentines who were 
living In the territory before 
the invasion. 


While he expected "some 
kind of rapprochement with 
Britain in the next few days. 
President Galtieri warned that 
Argentina was ready to fight 
off any British attempt to re- 


Argentina is . still rejecting 
British insistence that there 
should be no immigration of 
Argentines and no purchases 
of property on the Falklands 
by Argentines during a transit 
lional period. 


THE British Government's 
stated position in the talks over 
the Falkland's crisis has changed 
in several ways during die last 
six weeks. 

A comparison of the speeches 
and co mm ents in the Commons 
of both Mrs Thatcher and Mr 
Francis Pym, the Foreign Secre- 
tary, shows how the UK position 
has shifted, in particular; — 

• acceptance that the task force 
may be pulled back to match 
an Argentine withdrawal from 
the islands 

• abandonment of insistence on 
restoration of British adminis- 
tration, and acceptance of in- 
volvement of third parties as 
long as islanders are involved 
in these arrangements 

• dropping of insistence upon 
paramountcy of islanders’ 
wishes in favour of a more 
vague formula, 

Tlie re has. however, been no 
shift on two fundamental points, 
expressed by both Mrs Thatcher 
and Mr Pym in the Commons 
last Thursday and supported by 
Mr Denis Healey for Labour. 

These are the necessity of 
withdrawal of the whole Argen- 
tine invasion force as part of 
any ceasefire and the insistence 
that rhe outcome of. -long-term 
negotiations about the future 
nf the islands must Hot be pre- 
judged in advance, that is that 
Argentina must not claim, or 
believe, that sovereignly would 
be ceded within a short time. 

There are hardly any differ- 
ences of substance between Mrs 
Thatcher and Mr Pym, . though 


their emphasis and tone has 
varied, especially in the last 
fortnight. 

This may partly reflect their 
contrasting personalities. Mr 
Pym, in. particular, has stressed 
his desire to pursue talks of 
whatever kind. These differ- 
ences could become significant 
if the Cabinet is faced with a 
possible deal. 

After the Invasion on April 
2 Mrs Thatcher ' gave an 
immediate statement of the 
British position in the Commons 
debate the following day. 

She said the British Govern- 
ment bad “ always made U clear 
that their (the islanders’) 
wishes were paramount and that 
there would be no change in 
sovereignty without their con- 
sent and without the approval 
of the House.” 

In his first speech as Foreign 
Secretary on April 7, Mr Pym 
said Britain intended, "to see 
that the Falkland Islands are 
freed from occupation and re- 
turned to British administra- 
tion at the earliest possible 
moment.” 

He later assured the 
islanders that "Britain will 
stand by theta. We have always 
said that their wishes are para- 
mount.” 

That remained the British 
position in public statements 
over the next fortnight as Mr 
Alexander Haig, the U.S. Sec- 
tary of State, undertook his 
“shuttle diplomacy,” and 
ministers refused to discuss 
details of the talks. 

The first hint of a shift came 


in Mr Pym’s closing speech in 
the debate on April 29 when he 
discussed the “main elements" 
which had evolved during the 
Haig initiative' — the arrange- 
ments for-, withdrawal, for 
interim administration and 
arrangements under which the 
future status of islands might 
be discussed. 

After noting the need for an 
immediate withdrawal of Argen- 
tine. forces, Mr Pym said "we 
for our part would be prepared 
to move British forces in 
parallel. 

At the same time we have to 
ensure that there can be no 
change of heart or mind on the 
part of the Argentines during 
the process of withdrawaL” 

On the interim arrangements 
he also introduced an element 
of flexibility, saying that “pro- 
vided that the principle of 
British administration is pre- 
served, the Government are 
prepared to consider reasonable 
suggestions and ideas in this 
field ” 

On the status of the islands 
in the future negotiations, Mr 
Pym for the first time did not 
mention the word "paramount.” . 

He said the basic position is 
that “Britain is ready to co- 
operate in any solution which 
the people of the Falkland 
Islands could accept and any 
framework of negotiation which 
does not predetermine and does 
not prejudice the eventual out- 
come.” 

On May 5, Mr Pym said that, 
in the longer-term, that Govero- 


uveupy the Falkland Islands. 

"Let no one be mistaken.” 
he said in the interview. "I have 
400 Argentines dead and, if it 
is necessary for the defence of 
reasonable pride, historical 
pride . . Argentina is ready 
for 4,000 or 40; 000 for five or 
six months, or five or six years. 
Latin America's Argentina will 
not haul down Its flag, nor will 
it raise a white flag.” 


Negotiations 


Argentina is also insisting 
on a period of no more than 
18 months of negotiations be- 
fore its sovereignty over the 
territory is formally recognised. 


Union lifts ban Pope’s doubt over visit 


on official film 


Sr Nicanor Costa Mendez. 
Foreign Minister, on Saturday 
refused to say he was optimis- 
tic about the negotiations being 
carried out by the UN Secretary 
General, but commented that he 
was confident 


According to Argentine 
sources, the sticking points in 


Meanwhile, the Argentine 
side has said comparatively 
little about British military, 
operations in the Falklands 
region, limiting itself to saying 
that three of its aircraft had 
been damaged in an " enemy 
surface raid on Isla Borbon 
(Pebble Island). Argentina has 
also accepted the Chilean offer 
of a loan of the polar vessel, 
Piloto Pardo, for the transport 
of wounded from the Falklands. 


By Our Labour Editor 

THE FILM technicians’ union 
in Britain. ACTT, has ended its 
blacking of Government infor- 
mation films about the’ Falk- 
lands, following the re-openlng 
of negotiations between the 
union and the Government on 
redundancy notices issued to 
26 ACTT ‘members who were 
working for the Central Office 
of Information. 

It is understood that the ban 
had had little effect on cover- 
age in.. Britain of the Falklands 
crisis. 


VATICAN CITY— Pope John 
Paul said yesterday his planned 
visit to Britain later this month 
was threatened, despite its 
historic importance, by the 
Falklands crisis. 

However, he said he still 
hoped that with “ the. goodwill 
of men and the help of God" 
the crisis would be resolved and 
the journey would go ahead. 

He was addressing a crowd of 
50,000 in St Peter's Square. 
Rome, after returning from a 
four-day visit to Portugal where 
he escaped an attempt on his 
life. He looked tired and spoke 
slowly. 


After telling the crowd he 
was aware of the spiritual pre- 
parations' and expectations of 
British Catholics for his visit 
the Pope said: " Unforunaitely. 
the well-known events m -the 
South Atlantic have disrupted 
these expectations, putting the 
possibility of this journey in 
doubt” 


The trip £s due to start on 
May 28 and is viewed by the 
Church as of historic importance 
for the reconciliation of the 
Roman Catholic and Anglican 
faiths. It would be the first ever 
Papal visit to Britain 
Reuter 






*’ 



“Another big 
yawn from Qantasr 



•’ '.5 \*i y 
... *. , ■ , ■' * fy 


■ A ■ : p, , r r: 

*y’. > ft ! ; 


■. •• ■ V., 

* - » * — lntfi I.-Hfci I ■■ - . 


"Oh cunning, 

Qantas! 

“You tempt First 

Class travellers to Australia with sweet 
promises of 5-star fare. 

“The finest champagne. Vintage 
wines. All the etceteras. 

“Then, you lure them into those 
outrageously comfortable Sleeper Chairs. 

. “Knowing full well, they won’t stay 
awake long enough to take advantage of 
your pampering. 

“Weil, it's hardly surprising they drop 
off as soon as their heads touch the pillows. 

“What with fully adjustable padded 
legrests. 

“All of 4ft 6ins between 
head rests. 



'And enough 

legroom to accommodate 
even the most long-legged of loungers. 

“OK, Qantas! So all those wdl- 
rested passengers can now disturb my 
peace and quiet with even more vigoui: 

“But don’t expect me to take it ■ 
lying down!” 


Daily to Australia 


ment had “an open mind about 
what might be -the ultimate 
solution. The UN trusteeship 
concept is most certainly one of 
the possibilities and may even- 
tually prove to.be a highly suit- 
able one.” r^- 

The clearest indication of the 
shift in Britain’s position came 
on May 7 following the collapse 
of the U ^/Peruvian initiative. 

In his statement Mr Pym dis- 
closed details of an interim 
agreement which, he said, 
Britain would have been “will- 
ing to accept and implement 
immediately." 

The agreement would, he said, 
have demonstrated “substantial 
flexibility on our part.” . The 
proposals included: “First, com- 
plete and supervised withdrawal 
of Argentine forces from the 
.Falkland Islands matched by 
corresponding withdrawal of 
British forces. 

“Secondly, an immediate 
ceasefire as soon as Argentina 
accepted the agreement and 
agreed to withdraw. 

“Thirdly, appointment of a 
small groap of countries accept- 
able to both sides which would 
supervise withdrawaL under- 
take the . interim administration 
in consultation with the 
islanders’ elected representa- 
tives, and perhaps help in nego- 
tiations for a definitive 
agreement on the status of the 
islands, without prejudice to 
our principles or to the wishes 
of the* islanders. 

“FourtMy, suspension of the 
existing exclusion zones and the 


lifting of economic sanctions.”. 

In a later answer Mr Pym 
underlined the flexibility on the 
interim arranssinents. "I would, 
not. like to say that’ we have 
ruled oiit any particular options.- 
One ‘ can j imagine that interim 
arrangements that put Argen- - 
tina in a dominant , position 
would be totally unacceptable. 
But I have kept our options 
open." .. .1 

Mr Pym later "'elaborated- bn 
some of these points in the full 
Commons debate last Thursday. 

On withdrawaL he said that 
when Argentina . demonstrated 
"that readiness t a withdraw- is • 
a reality, we shall feel able and 
willing to match this — in ways 
yet to be determined— by stand- 
ing our own forces off from the 
area of conflict. 


Earlier, oh Thursday, during 
Prime Minister’s questions, Mrs 
Thatcher appeared to. be insist- 
ing on a firmer guarantee than 
‘Readiness to withdraw.”. ;- : 1/'. 

She said that "undbri the 
arrangements that hato continu- 
ally been discussed— the pro- 
posals changed a little - — our 
task force, would not be with- 
drawn until the Argentines had 
withdrawn.” . 


On the interim arrangements, 
Mr Pym . made it clear that 
Britain: did not “debar involve- 
ment of 'third parties in these 
arrangements. It may or may 
not be the case that the UN will 
have ..a role to play. But we 
could not of course agree to a 
structure,, however temporary, 
which Ignored the past and dis- 


Mr Francis Pym, Foreign - 
Minis ter: desire to pursue talks. 


regarded the- administrative 
experience of the British inhabi- 
tants of the islands.” 

He said the islanders must he 
fitted in to any interim arrange- 
ments. 


Protest 
over U.S. 


ambassador 

prepared 


Eight big Argentine 
companies call 


By Hugh O'Shaoghnessy 
in Buenos Aires 


creditors’ meeting 


Officii International Carrier for the ' 

XU Commonwealth Games Brisbane 1982.T 


AtaJD persistent reports that 
Argentina may . move back to 
civilian rule, perhaps in the 
next few months, military 
officials in Buenos Aires say 
that Argentina-is preparing a 
formal note of protest, to 
Washington about the activi- 
ties of Mr Harry Schlaude- 
man, the U.S. ambassador. 

• The officials, quoted by the 
Noticias Argeutinas news 
agency, .says that Mr 
Schiandeman has exceeded 
his diplomatic functions in 
talks with politicians, trade 
unionists and businessmen..- 

Anti-U-S. figures have for 
some days accused "him of 
wanting a change of govern- 
ment and of ’supporting 
politicians opposed to' the 
junta. 

It is not at all clear, how- 
ever, whether any new gov- 
ernment would modify the 
popular decision to maintain 
Argentina’s hold on the 
Falkland Islands. 

The normally well-informed 
col umnis t Sr Jesus Iglesias 
Ruoco of the conservative 
dally La Prensa, who, in 
January, forecast the Argen- 
tine invasion of the Falklands, 
reported yesterday that the 
Government was considering 
calling elections . for 1984 
which would be opto to all 
except those connected with 
“ subversion.” 

He added that some Govern- 
ment figures were wanting 
an announcement of this to 
be made at once without 
waiting for the end of hos- 
tilities with Britain. 

He added that the Feronisls 
appeared to be veering 
towards this election option 
and away from their earlier 
plans for a political deal with 
. the military that they had 
been favouring earlier. 

Within the powerful middle- 
of-the-road Radical Party, the 
contest is continuing between 
whose who ' want former 
President Arturo III!*, 
deposed by a military coup in 
1966, proclaimed the party’s 
new presidential candidate 
and those who support the 
present party leadership of 
Sr Carlos Con tin. 

The “ deveJopmentalists " 
meanwhile who seek the 
rapid industrialisation of the 
country behind high tariff 
barriers, are putting forward 
former Foreign Minister 
Oscar Camllion as their presi- 
dential candidate. 

He Is hacked by General 
Roberto Viola, who was de- 
posed from the Presidency by 
General -Galtieri last Decem- 
ber. 

Ad outside civilian runner 
for the presidency is seen as 
Sr Alexandro Orfila, the 
present secretary general of 
the Washington-based Organi- 
sation of American Stales. 

The . Galtieri junta, the 
successor of the military 
government which toppled 
President Maria Estella Paron 
from the Presidency in 1976 
has been cautiously giving 
the still powerful Peronfst 
movement more political 
facilities. 

The Peronist publication 
El CandUIo, banned for many 
years, has this month re- 
appeared on the news stands 
carrying a message of support 
for.the invasion of the Falk- 
land Islands, a note of thanks ~ 
to the Spanish Pfaalangist 
Party for its support of 
Argentine military action and - 
bitter criticisms of 'economic' , 
liberals ' and : foreign multi- 
nationals. 1 


BY JIMMY BURNS IN. BUENOS AIRES 


EIGHT BIG companies belong- 
ing Sr Hector Capozzalo's pri- 
vate holding company, one. of 
the largest business empires in 
Argen tina, have called, a credi- 
tors’ ^meeting as a: first step 
towards a declaration of. formal 
bankruptcy. 

.A court- has' ordered a 
detailed analysis of the group’s 
financial- problems, but,, the 
Capozzolo empire was recently 
reported to liato debts of about 
8270m (£147m). . ..... .. .... . 

The group has had wide 
interests throughout industry, 
agri-business, real estate,, and 
the financial sector,.: A -few 
years ago it . was reported to 
have made a joint bid for the 
Falklands. Island Company. - 


Acute sign 


The threatened., bankruptcy 
of the holding company is the 
most acute sign to date of 
Argentina's - delicate eiomimic 
situation, as the country 
struggles to convince the world 
that British and EEC sanctions 
will not bring it to the point of 
collapse. 

Further confirmation of the 
extent of the Argentine reces- 
sion came this .weekend with 
the release of figures- which 
show' that nine important sec- 
tors- of industry used only 54.1 
per cent of installed • capacity 
during the first quarter of 1982. 

According to a study by the 
Argentine Business University, 
there- was an 8 per cent drop 
in -output by these sectors, com- 
pared tq the equivalent period 
last year. The most spectacular 
decrease in production was 
registered by the automobile 
industry, which utilised only 
26.2 per cent of its installed 
capacity, and registered a 9 
.per cent drop in output, com- 
pared to the first quarter of 
1981. 


crisis have stimulated intense 
debate in Buenos Aires 
economic circles. There arc 
also .renewed reports that Sr 
Roberts Alemann, the Economy 
Minister, is under great 
pressure from sectors of the 
military to modify his economic 
policies. ■ 

. Ambito Financiero, the lead- 
ing Argentine financial dally, 
published this weekend a highly ; 
critical memorandum alleged • 
to: have been presented to the 
.military junta - by leading 
economic officials other than 
Sr. Alemajah. -The document 
claimed that there were now 
“serious '• contradictions ” 
between, the- political powers : 
and. some... aspects of -the 
economic programme, and 
.emphasises the' pressing need 
to., reconcile the two.. The 
document points to the con- . 
tinning recession, the lack of - 
investment provoked . by 
political uncertainties and con- - 
turning high interest rates. 


irW 

il'li 


ilp 


Ut 

» M ' 


Critical point 


It claims that the Argentine ;v . ' .. 
economy is:, approaching a ■.;;-••• 
critical point . . " If things go on 
the Way they are, the financial - 
system will inexorably go bank- 
rapt. . . . .The deepening reces- J : ■ 
sion . . . will mean increased ; r 
unemployment and a further . 
decline in real wages in a con- . 
text of hyper-inflation." 


. The deepening recession, here, 
and the growing financial prob- 
lems provoked by the Falklands 


The document -contains a : 
strong defence of the liberal ■ 
economic philosophy advocated • 
till now by Sr Alemann, but -. 
warns that' there may be pres- 
sure to implement a " populist . • 
and statist programme," pre- 
sumably as a-.. result of than, 
nationalist -. emotions . being • 
stirred by the Falklands crisis. 

The Public Information Ser- 
vice, the propaganda arm of the : "‘r 
military junta, announced last .-. 
week that the government's 
programme of denationalisation ' ' 
had beto postponed until " •• • 
further notice. ' 


Mrs Thatcher thanks 
France for support 


BY MARK MEREDITH IN EDINBURGH 


MRS MARGARET THATCHER, 
the Prime Minister, yesterday 
thanked France for. the support 
it had given Britain over the 
invasion of the Falklands, and 
stressed that the two countries 
bad very similar attitudes to 
violations of .international, law. 


She was speaking at a meet- 
ing of the Fra neo-British Coun- 
cil in Edinburgh, following talks 
with M; Pierre Mauroy, the 
French Prime Minister. The 
council was set up 19 years ago 
to give- ..a rresh impetus to 
bilateral relations between, the 
two countries. ’ 


principles because it has a 
special commitment to liberty 
and responsibility, “for small 
territories far. from its short*, 
she added. “ I believe that the 
present governments of France 
and Britain, and the people of 
our- . two countries, . have a 
.similar perception of the 
dangers, economic and political, 
and a similar -resolve to' face 
them.’*- 


-G 

The Prime Minister, addea: ^ 

“ There is no surer basis for ’ :,v A;r 


FINANCIAL TIMES. publiShad. dally 
except .Sundays B ud h olidays. ,U-S. 
subscripted rates 5365.00 par annum. 
Second Claes • OOStaqa paid at New 
rode, N.Y,» and at additional .mailtost 
centres, ‘ '. 


Mrs Thatcher, who is due to 
meet President Francois Mitter- 
rand of France in London today, 
said that the day after toe 
invasion,, he telephoned her to 
express ibis support fop the 
British position. “I shall never 
forget that quick.pnd.. timely 
gesture.” The President of 
France understood at once the 
principles which were at stake: 
that, if an aggressor .succeeded 
in this case, no small country 
or territory anywhere would be 
safe; that if freedom' end inter- 
national law were "flouted, 
unchallenged, in a’ distant pint 
of toe world, they- would be 
elsewhere too.” - 


friendship -than that. Anglo- 
French co-operation is not only . r 
a dream, not only an ideal, it is 
a necessity.” ■> 

M Mauroy, In lads address to . 
the council, "said the common * : ‘- 
approach of the two countries 
had found expression in rela- y 
tkra to events an the South -. 
Atlantic. 


.--V 

■ 


■France- understood: those: 


“Today, as yesterday, when , 
peril : threatens, France and y . ■ 

Great Britain are determined lo ;i-.y 

defend* the., values* '. or, which iy 
their -'societies . are based, y 
France, for her part, ■will biways v 

stand up against ’violations •« 
iriterrfational law.v'toe '^M 11 ,V"" - ■ 

always . . advocate negotipuoa y: 
rather than Ibe'usiS of f’orcc- .yw-*": 
The French IPruw^: Minister V^-y y , 
added that France, set great 

^tore by anfegtfctetfid seUieinenU y 




... . ~ ... ^ 







Fina4c?al Times Monday May 17 1982 


rJJsC*-* | ^ 5^5 



.s 




BY YtCTOR WALKER IN ATHENS 

MR AtEEANTDER HAIG, the . 
U.S. Secretary of 'State, in . a 
sunrise remark: in Athens . ?* 
yesterday,, said that no meet- 
ing between- President Ronald ■ 
Reagan - and Dr Andreas 
Papandreou, the Greek Prime 
Minister, had been planned -for 
the Nato summit in Borin nest 
month: • 

The . “ Reagan - Papandreou 

summit " has been presented . . 
here as potentially vita^-for the 
future of Greek-UJS. and Greek- 
Nato relations. ... _ 

Mr Haig’s dampener followed & 
more -than six-hqur* of -talks 
between Mr Haig 1 and Dr Papain ' ^ 
dreba, which' left clear gaps 
between the .positions of their 
respective governments; bn 
questions of Nato. U.S. military 
bases in Greece, Cyprus.. and bn 
the guarantee , .sought by 
Greece .against’ possible . 
Turkish aggression- in the JO 
Aegean. 

Mr Haig said the only 
bilateral discussion so far ? “ 
scheduled for Boon by Mr rP 
Reagan was that with Herr P* 
Helmut Schmidt, the West Ger- if 
man Chancellor, as the head of 
the host government, though 
“this does not- .preclude what- 
ever discussions will occur in : 
the margins, at opportunities 
provided by breaks and social 
events.’* jg 

Mr Haig, the first senior U.S. m€ 
official to visit Greece since the t j 0 
socialist victory in general elec- j u ] 
tions last October, had two me 
sessions ' of talks with Dr ^ 
Papandreou on Saturday, at sta 
Prime Minister’s home and mt 
during a dinner given by the ^ 
U.S. ambassador. He also spent 1 
an hour with President .Con- of 
stamm Karamanlis. ati 

He said yesterday that his sir 
visit, “while not focused on ; 
making specific decisions, on Tu 
particular questions, did estab- coi 
lish a very- positive framework Ae 
for the improvement of our thi 



Dr- Papandreou: Gaps after 
talks 

bilateral 'relationships, includ- 
ing the. defence sector.” There 
had been no decisions on U.S. 
bases, he said, but a consensus 
of view on how to deal with the 
issue, primarily as regards 
timing and venue.” 

In reply to a question on the 
guarantee of its borders, sought 
by Greece as a condition for its 
continued membership of Nato, 
Mr Haig said: “The funda- 
mental character ’V of this ques- 
tion was “ best assured by the 
full participation ” by Nato 
member states in the alliance, 
and by “ the resolution of long- 
standing questions among the 
member states on a bilateral 
basis.” 

This was seen as a suggestion 
of new Greek-TorMsh negoti- 
ations, suspended by Athens 
since the elections.. ‘ 

He insisted that the Greek- 
Turkish dispute over Nato 
command responsibilities in the 
Aegean should • he settled 
through the Nato framework. 


Polish price rises cause 
sharp fall in real incomes 


BY CHRISTOPHER BOBiNSKI IN WARSAW 


REAL INCOME levels in 
Poland have fallen at i record 
rate as a result of steup price 
increases last February,., 
according to figures^ published 
by the Government Central 
Statistical Office.:. . 

The figures reveal that real 
income for state employees, the 
bulk of the workforce, fell by 
23 per cent in the first quagter 
compared to the same, period 
last year. 

The slump in income is due 
to continue into this month as 
the effects of the February 
price rises are felt once 
domestic budget and one-off 
bonus payments, paid out in 
February and March ro cushion 
the impact of the rises, are 
spent. 

In March the gap between 
incomes and actual spending, 
which grew throughout last 
year, frustrating the efforts of 
planners to balance supply and 
demand, actually began to 
narrow for the first time. 

The process continued with 3 
vengeance in April.. . 

The price rises, however., are 
accompanied by no improve- 
ment in- actual supply level- It 
is estimated that the flow of 


consumer goods on 4>o the 
markets has dropped this year 
by some 20 per cent compared 
to Oast year. , . 

• But the figures show -that un- 
employment has - not taken a 
hold; in the economy. 

Talks on massive reductions 
have produced widespread 
anxiety among * workers and 
industrial managers admit that 
this has led to an improvement 
in discipline. ‘ ' 1 
- However, employment in i 
state-run industry was 268,000 
or -5.7 per cent down on the I 
. numbers, employed in April last I 
year. The fill is explained by 
people taking advantage of early 
retirement schemes and women 
taking longer leaves. In April 
the number of vacancies in 
industry stood at 232,000. 

The value of industrial pro- 
duction oveT the first four 
months of the year has fallen 
by 10.2. per cent compared to 
the same period last year. Out- 
put in the extracting industries 
like coal and copper is higher 
than last year, but manufactur- 
ing industry is crippled by 
shoriages of raw materials, com- 
ponent s and spare parts from 
the West. ' - ■ 


Rise in French jobless 


BY TERRY DODSWORTH IN PARIS 


FRANCE’S seasonally adjusted 
unemployment rate is likely to. 
pass through the 2m mark this 
month unless there is a signifi- 
cant change in the current 
upward trend. 

Releasing the figures for 
April, which showed a 20.800 
increase in unemployment- to a 
total of 1,988.300, the Labour 
Ministry said that the rise had 
been roughly constant since 
last summer. 

A similar rate of about 1 per 
cent this month would push the 
rate over 2m. 

The seasonally adjusted 
figures contrast with the un- 
corrected statistics which show a 
farther sharp fall in unemploy- 
ment for the second successive 


month. The l.S per cent drop 
to. 1,028,200 consolidates last 
month’s fall, which carried the 
rate below 2m for the first time 
since - last October. 

Another positive feature in 
the present trends is the slight 
slow down in the annualised 
rate of increase in unemploy- 
ment— down 4o I7.I per cent 
last month against April 1981. 
bringing the figure below 20 
per cent for only the second 
time during the last year. 

The overall statistics indicate, 
however, that the Government’s 
battle against unemployment, 
strengthened by legislation on 
longer holidays and the 39- , 
hour working week, is not yet 
paying big dividends. 


BY STEWART FLEMING IN BERLfl* 


DELEGATES OF the 8m mem- 
bers of the West German trade 
union movement are. meeting 
here this week to elect a new 
head of the unions' umbrella 
organisation, the German Trade 
Union Federation (DGB), to 
succeed Herr Heinz Oskar 
Vetter, who has held the job 
for the past 13 years. 

Union officials are hoping that 
the meeting, the 12th bi-annual 
congress of the DGB, will pro- 
vide an opportunity to. rally sup- 
port for the leaders* 'policies. 
Rising unemployment and 
recent financial scandals -in the 
union-owned • JMeue •, Heimat 
building concern have, it' is 
acknowledged, weakened gras- 
roots support for the powerful 
union bureaucracies. 

The week-long, meeting, 
which will deal with more than 
300 resolutions, witt.be addres- 
sed by thtriqaasiqf three of the 


four main political parties in 
West Germany, and by Chan- 
cellor Helmut Schmidt. . 

Thirteen years ago, when 
Herr Vetter first took office. 
West German trade unions 
stood at the. Start: of a period 
of considerable expansion of 
their influence in the economy, 
on the factory floor and in Bonn. 

However, Herr Ernst Breit, 
57-— the head of the Postal 
Workers’ Union, who is expected 
to. succeed Herr Vetter — would 
do so when the unions are 
increasingly or the defensive. 

Unemployment hM a record 
for the federal republic of 
aJ-mnsi- 2m at the beginning of 
the . year and is expected to 
reach new peaks next winter. 
Workers* real wages axe declin- 
ing. The social security network 
for which the unions fought is 
threatened with cuts and the 
unions' political influence has 


OVERSEAS NEWS 


Fears grow 
of Israeli 
invasion 
in Lebanon 

By P yrid Lennon in Tel Am 
THE ' ISRAELI . Cabinet 
yesterday issued the latest in 
a. series of warlike threats 
against the Pales tinian guer- 
rilla forces in Lebanon, 
warning, that “under no 
condition ” will Israel penult 
the Palestinians to continue 
to “directly threaten the lives 
of Israeli citizens.” 

Fears of an imminent 
' Israeli invasion of Lebanon 
have been heightened by the 
weekend statements by Gen- 
eral Rafael Eitan, the Chief 
of Staff, confirming that Israel 
has concentrated troops' along 
the northern border and has 
put the regular army on the 
alert. 

Yesterday, for the second 
time in 10 days, Mr Menahem 
Begin, the Prime Minister, 

' held discussions on the 
Lebanese situation with the 
leaders of the opposition 
Labour Party, Following the 
earlier meeting the Labour 
politicians spoke about the 
need for restraint This time 
they refused to comment 
■ Last Sunday Israel and' the 
Palestinians exchanged air 
raids and rocket attacks across 
the northern border. This was 
the most serious violation to 
date of the U.S.-mediated 
ceasefire that went into effect 
last July after a 12-day cross- 
border duel which caused 
serious damage to Israeli 
property and morale in the 
north. ' 

A senior Israeli official said 
after, the Cabinet meeting 
that Israel was not looking 
for an excuse to go to war, but 
was -determined to end the 
situation where Israel’s 
northern settlements weee 
within range of Palestinian 
artillery and rockets. 

“ The terrorists are holding 
the residents of the north 
hostage, and this situation can 
not go on for long,” he said. 

AP reports from Beirut: 
Rival left-wing Moslem 
militias battled with mortars, 
rocket-propelled grenades and 
machine guns in the streets of 
Lebanon's port of Si don 
yesterday. Three people were 
killed and several buildings 
were set on jire. 

Debt hurdle 
for plan to 
buy El A1 

• By Our Tel Aviv Correspondent 
A GROUP of Israeli business- . 
.men yesterday presented the 
Government with a proposal 
to buy the slate-owned 
national airline El AI and 
turn it into a private com- 
pany. No financial details of 
the offer were made public. 

Sale of El Al would avoid 
Implementation of a ban on its 
a flights on the Sabbath, which 
* is due to come into effect 
within three months. 

. The ban arises from an 
agreement made by Mr 
Menahem Begin, the Prime 
Minister, with a small 
religions party whose support 
he needed to form a coalition 
after the General Election 
last June 

The potential buyers are 
headed by Mr Haim Shiff, 
owner of the largest hotel 
chain in Israel. He said that 
the group includes some of 
the .country’s leading travel 
agents and Is backed by a 
major Israeli bank. 

However, Mr Nahman 
Perel, chairman of the El Al 
board, said yesterday that he 
knew of no serious plan to 
sell the national carrier . 
Another senior El Al official 
said that, regarding the con- 
dition of the airline’s finances, 
nobody would be willing to 
buy it. • 

El Al has suffered severe 
losses in - recent years and the 
accumulated deficit Is esti- 
mated at about S500m. Despite 
a reduction of the annual loss 
from 8100m in 1979 to $20m 
this year, there is mo imme- 
diate prospect - of farther 
reduction. The ban would 
lose the airline about Sltiu a 
year. 

The decision to prevent 
flights on the Sabbath has 
eansed a big row in Israel and 
some liberal members of the 
coalition have threatened not 
to support the measure when 
H comes before the Parlia- 
mentary Finance Committee. 


Brazil drops Iraq in favour of Iran 


BY ANDREW WHITLEY, RECENTLY IN BRASILIA 


BRAZIL has taken a critical, 
long-term decision to shift away 
from its Jong-standins economic 
alliance with Iraq in favour of 
Iran. The decision is based on 
Brasilia’s belief that Iran is 
likely to win the 20-month-long 
Gull War soon. 

A top-level Iranian delegation 
last week offered Brazil “an 
important role" in a major 
reconstruction- programme to be 
launched hi Iran in the after- 
math of the war. This is apart 
from the immediate prospect of 
exports worth 8500m (£272m) a 
year. 

Senior Government officials 
say the decision is likely to have 
been taken personally by 
President Joao Figueiredo 
shortly before his departure 
last week on a state visit to the 
United States. 

But the full extent of the shift 
will only become apparent later, 
as contracts are signed. 

At risk for Brazil is its most 
important economic relationship 
in the Middle East. 

Iraq has for years been either 
its. leading or second place oil 
supplier: is the major customer 


for the booming Brazilian arms 
exports industry; and has 
awarded contracts worth 
hundreds of milions of dollars 
to Brazilian companies. 

However. Brasilia has 
evidently come to the conclusion 
that Iraq badly needs what 
Brazil has to offer and will not 
therefore damage the essentials 
of the relationship in a fit of 
pique against Brazil's rapproch- 
zneut with Iran, its long-standing 
enemy. 

Brazil accepts that without a 
political switch now it could 
find Itself on the losing side 
in the Gulf War, frozen out of 
a market in Iran which offers 
Immense possibilities for Brazi- 
lian- contractors and exporters: 
of foodstuffs, industrial raw 
materials and manufactured 
goods. 

As one senior official said: 
“Iran has 40 million people, 
it has oil and it is going to win 
the war.” In addition private 
discontent with Iraq is begin- 
ning to grow in Brasilia. 

Moves towards rapprochement 
would have taken place earlier 
if it had not been lor the fact 


that the Brazilian Ambassador 
to Baghdad is a retired army 
general close to President 
Figueiredo, while the Embassy 
in Tehran is manned only at 
the Charge d* Affaire level. 

For Iran, Brazil, an important 
trading partner under the Shah, 
is exactly the sort of ally the 
Islamic Republic of Ayatollah 
Khomeini would like to have, in 
preference to its old ties with 
the West. 

Brazil has a wide range of 
raw materials, a-, sophisticated 
manufacturing industry, and 
good Third World credentials. 

But Iran’s offer to Brazil of 
a special place in Us national 
reconstruction campaign is con- 
ditional on Brazil ’ resuming 
purchases of significant quan- 
tities of Iranian oiL 
. Formerly running at volumes 
of up to 100,000 barrels a day. 
oil imports from Iran dried up 
totally last year. 

The Brazilian. Government's 
twin objectives of reducing tw 
country's dependence on im- 
ported oil and diversifying 
away from Middle East sources 


of supply will, at the least, have 
to be modified as a result of 
the Iran decision. 

Petrobras, the state oil com- 
pany. has already decided in 
principle to resume -purchases 
of Iranian oil. 

Volumes and price are still 
to be settled, but Braridian 
officials are confident that as 
attractive price below the going 
Opec rate can be agreed on. 

The Iranian delegation, 
headed by Mozafar Jahrani, the 
Deputy Commerce Minister, 
visited Petrobras on Wednesday - 
after talks in Brasilia. It also 
submitted to the foreign trade 
department of the Banco do 
Brasil a list of other products, 
ranging from carpets and elec- 
tric samovars to biscuits and 
shampoo, which Iran wants to 
sell. 

Brazilian exports to Iran in 
1981, made up largely of animal 
feed and foodstuffs, were worth 
8194.5m. But- a member of the 
delegation said Iran wants to 
buy -S400zn worth of goods, 
including trucks, tractors, steel 
and paper, over the next nine 
months. 


Gulf Ministers break off emergency talks 


BY 1AMES DORSEY IN KUWAIT ’ 


FOREIGN MINISTERS of the 
six-nation Gulf Co-operation 
Council (GCC) broke off an 
emergency meeting in Kuwait 
on Saturday in an effort to 
allow more time to achieve a 
unanimous Arab stand on the 
ZO-month-oid Gulf war between 
Iran and Iraq. 

The ministers of Saudi 
Arabia, Kuwait, the United 
Arab Emirates, Bahrain, 
Qatar and Oman will resume 
their talks on May 30 in the 
Saudi capita) Riyadh. 

.Gulf diplomats say that 
Syria constitutes the main 
obstacle to the formulation of 
a unified Arab stand on the Gulf 
war in favour of Iraq. Syria 
supports Iran and closed its 
borders with Iraq last month, 
forcing the regime in Baghdad 
to cut its oil exports by half. 


A weekend announcement 
that Zaire Is to restore its 
diplomatic links with Israel 
drew heavy criticism from 
Arab countries yesterday, 
writes our foreign staff. Saudi 
newspapers condemned the 
move by President Mobutu 
Sese Seko and Kuwaiti radio 

The oil rich Gulf states fear 
that the apparently imminent 
Iranian- victory on the battle- 
field will lead to instability in 
the region and Iranian attempts 
to impose its revolutionary 
interpretation of Islam on its 
neighbours. 

Limited in their options to 
counteract Iranian military re- 
cesses the Gulf states hope that 
a proposed Arab Foreign 
Ministers' . conference declaring 


called for a political and 
economic boycott of the Afri- 
can state. 

President Kenneth Kanqda 
of Zambia, currently holding 
talks in Kuwait, reportedly 
to dissuade other African 
states from following Zaire's 
example. 

its full support for Iraq will 
give President Saddam Hussein 
came under pressure to try 
the necessary political, military 
and moral boost to bring the 
Iranian offensive to a halt 
Gulf diplomats add that Syria 
may be induced to soften its 
support for Iran and loosen the 
screws on Baghdad in return 
for a delay in moves to bring 
Egypt back into the Arab fold. 
The Libyan news agency Jana 


reported yesterday that Libyan 
leader Muammer Gadaffi and 
visiting Syrian President Hafez 
al Assad have warned the Gulf 
states of failing into a trap laid 
by the U.S. and Israel. 

The two leaders were quoted 
as saying that the U.S. and 
Israel were exploiting the Gulf 
war to divert attention from the 
Arab-Israeli conflict. 

Renter adds: Iran said yester- 
day its forces had killed or 
wounded more than 50 Iraqis in 
fighting in the Abadan and 
Khorramshahr front. 

AP adds from Beirut: 
Ayatollah Ruhullah Khomeini’s 
Government warned Arab 
nations in the Gulf on Saturday 
that they would “undoubtedly 
sustain losses ” if they came to 
Iraq’s rescue. 


Singapore 
rate of 
growth 
slows down 

By Kathryn Davies in Singapore 

SINGAPORE’S rate of growth 
slowed in the first quarter of 
this year from 10 per cent in 
1981 to 7.3 per cent in the 
first quarter of 1982. 

According to figures compiled 
by the Ministry of Trade and 
Industry, this represents 
Singapore's worst economic 
performance for four years. 
The Ministry says that manu- 
facturing output grew by 1.6 
per cent in this period, the 
lowest since 1975. 

The electrical and electronics 
industry continued its decline, 
as did the textiles, timber 
and plastic industries. Both 
trade and financial sectors 
recorded lower rates of 
growth. 

The announcement of such 
relatively gloomy figures at. 
this time is likely to preclude : 
much lower wage settlements 
this year. The National 
Wages Council (NWC) which 
recommends the annual level 
of salary rises each year is 
due to make its recommenda- 
tions next month. 

While the figures are less good 
than last year's overall rate 
of growth, it seems more 
likely that the Government 
wishes to forewarn workers 
that their wages will increase 
much more slowly than in 
previous years, rather than 
signalling any real difficulties 
with the Singapore economy 
as a whole- 


Woman Premier 

The Yugoslav Parliament yes ter-) 
day voted Mrs Milka Pianinc the « 
country’s first woman Prime 
Minister to succeed Mr Veselin J 
Djuranovic, Reuter reports from \ 
Belgrade. 1 

It also elected her 2S-member 
Cabinet in a scheduled Govern- 
ment reshuffle following general 
elections in March and April. 


ZANUSSI PRODUCE REFRIG 


. : ;j 







AND INDUSTRIAL COMPONENTS 
AND CATERING EQUIPMENT 
AND PRE-FABRICATED HOUSING 
AND MORE, AND MORE. 


W. German unions seek support 


waned as the power of its tradi- 
tional political partner, the 
Social Democratic Party, within 
(he ruling, coalition declined. 

The DGB congress is also 
taking place in the shadow of 
■the Neue : Heimat scandals. 
Among the 385 resolutions 
which the delegates will debate 
is one from the trade banking 
and insurance union, whicbcalls 
for a wide-ranging discussion of 
the philosophy and supervision 
of ' the . unions’ vast business 
empire, winch encompasses firms 
with assets of about DMlOObn 
(£23 bn). 

Herr Broil’s candidature 
springs directly from die Neue 
Heimat affair. He was selected 
as the official DGB candidate to 
avoid what threatens to be a 
divisive battle -during the con- 
gress over the candidature of 
Herr Alois Pfeiffer, the DGB’s 
first official candidate. 







Financial. Times Mon^ax-fi^X;17. £ 1982 


WORLD TRADE NEWS 


/? 


WHO pushes ban 
on promotion of 
milk substitutes 


Sharp rise 
forUK 
investment 
overseas 



Cheeseright reports 


Overseas projects policy suffers severe blow 


BY BRIJ KHINDAftlA IN GENEVA 


BOTH WESTERN and Third 
World governments have agreed 
■to speed im pi era eolation of an 
international code banning all 
promotion by industry in the 
$4 bn world market for mother 
milk substitutes. 

In a new resolution, the 
World Health Organisation's 
(Who) 155-nation annual 
assembly instructed its secre- 
tariate to “ design and 
co-ordinate a comprehensive 
programme of action. ” to 
encourage governments to fully 
apply and monitor (he code 
approved last year. 

In a significant turn-round the 
U.S., which was alone in voting 
against the code in 19S1, joined 
the consensus supporting 
Fridays resolution. 

The code's wider application 
is likely to reduce competition 
especially m developing coun- 
tries which absorb about $2bn 
worth of infant formula pro- 
ducts. It will also place heavier 
financial and administrative 
burdens on governments which 
usually cannot afford to provide 
even minimal health services to 
their people. 

In an attempt to prevent 
individual manufacturers or 
governments from interpreting 
the code in different ways, the 
resolution also asks the Who 
secretariate to ensure con- 
sistency with the code's “ letter 
and spirit.” 

The code urges governments 
to take over distribution of 
breast milk substitutes from 


in dust ry and ban publicity os 
well as the giving of gifts and 
free samples to mothers. 

Only a few governments have 
so far introduced measures 
modelled on the code. 

The only major manufacturer ! 
to support the code so far is 
Nestle, the Swiss-based food 
company which has the largest 
Third World sales, of breast 
milk substitutes. Bat critics 
claim that its instructions to 
managers to implement the 
code misinterpret the code's 
provisions. 

At a Press conference in 
Geneva last week Mr Edmund 
Muskie, the former U.S. senator 
and State Secretary, introduced 
a Nestle-flnanced commission 
made up of church leaders, doc- 
tors and nutritionists who will 
advise Nestle in applying the 
code. No Nestle employees are 
members. 

Rejecting claims that the 
panel cannot be impartial 
because of its link with the 
company, the senator said U 1 
have spent 35 years establishing 
my credibility and Tm not 
ready to throw it away." 

The former senator said he 
saw his chair man shi p of the 

commission as an interesting 
challenge and an opportunity 
to help reduce infant malnu- 
trition in developing countries. 

If Nestle disagrees with the 
commission’s findings, the com- 
mission would make them 
public, forcing the company to 
choose between mending its 
ways or letting his reputation 
be tarnished. 


By Paul Cheeseright 

THE UK’s overseas direct net 
investment rose sharply to a 
total of £5bn last year, accord- 
ing to provisional estimates 
by the Department of Trade. 
This is a rise of £L5bn on the 
total at the end of 1980. 

The figures, published In 
British Business, emphasise a 
trend which has emerged 
markedly since 1978. tfK 
company investment overseas, 
excluding oil companies, has 
risen fivefold in value over a 
decade, although this partly 
reflects inflation. 

The pace of investment 
overseas last year was quicker 
than that for inward invest- 
ment, reversing the tendency 
seen in 1980. Last year 
i nw ard investment appears to 
have fallen to £Hm, as UK 
affiliates repaid or made loam 
to their overseas investors. 

In 1980, however, inward 
Investment had risen by np 
to a third over 1979, again 
e x cl uding oQ companies, to a 
total over £2. Km, while the 
underlying increase of ant- 
ward Investment rose by just 
over a sixth. 

The main market for out- 
ward investment in recent 
years has continued to be the 
U.S., and three-quarters of the 
UK's net purchases of share 
and loan capital during 1980 
were in the U.S. The propor- 
tions were roughly the same 
for 1978 and 1979. 

The increased amount of 
overseas Investment has 
brought with It a higher level 
of overseas earnings. 


TO THE LAST moment, British 
Ministers were involved in dis- 
cussions to safeguard Davy 
McKee's position as the lead 
contractor for a £l.Sbn steel- 
works in India. The refusal of 
the Indian Government to trans- 
late a Letter of Intent into a 
firm contract is a severe blow. 

Much political prestige had 
been staked on winning' that 
contract. Mrs Thatcher, the 
Prime Minister, has intervened. 
A visit tn India by Prince 
Charles was not whofly un- 
related to tile chances of win- 
ning it - As Trade Secretary, 
Mr John Biffen had talks about 
it In the last stages. Mr Peter 
Rees, the Minister for Trade, 
was involved. 

This high level of political 
involvement was not surprising. 
The UK Government has laid 
great stress on building up the 
British presence in the inter- 
national project contract field 
and to tins end established, 
within the Department; of 
Trade, a Projects and Export 
Policy Division. 

This seeks to bring together 
the different elements of official 
support for British bidders — 
co-ordinating the activities of 
the Export Credits Guarantee 
Department with political sup- 
port and the private sector 
companies involved. 

The Division remains the 
visible manifestation of “UK 
Inc. ” And the greater flow of 
business over the last two years 
in the international projects 
field testifies to its success. 

Government ministers have 
been fond of saying that in the 
18 months to la'st February, 
£5bn of contracts worth over 
£10m each have been won. The 
value of buyer credits, the main 
financing vehicle for project 


Within 24 hours of Davy 
McKee failing to gain the steel 
contract, another British con- 
sortium, led by Northern 
Engineering Industries, was 
signing a contract for a torn- 
key project to build a £231. 5m 
thermal power plant at 
Ilihand, in Uttar Pradesh, 
writes K. K. Sharma from 
New Delhi. 

Other members of the con- 
sortium are GEC Turbine 
Generators and Babcock and 
Moray, part of Babcock Inter- 
national. NE1 ha? the respon- 
sibility for the supply and 
commissioning of all the 


equipment at the 1,00ft MW 
plant, 

A further and related con- 
tract, for the development of 
the AmroU' block of coal 
mines at Slngranll, is under 
negotiation, but has not run 
Into any difficulty. NEI Is a 
coal mining equipment sup- 
plier as well as a power plant 
contractor. 

The Indian Government 
has accepted UK Government 
offers to finance both the 
power station and the coal 
mine development to fuel it. 
So far there is an export 
credit, carrying an interest 


rate of 7.75 per cent, for 
£23L5m and UK aid commit- 
ments of £UQm. 

The aid Is made up of' a 
£S0m grant and £60m of lands 
owed by India to the UK hut 
not now to be repaid. 
•Further export credits for 
the mining side of the project 
are expected to her announced 
soon, but they will cany an 
interest rate of 10 per cent. 

The contract is the biggest 
overseas won by. NEI and is 
seen by the group as a break- 
through into the. .top league 
of international power station 
contractors. 





V 


business, at £3.6bn, granted be- 
tween April and November last 
year was higher than for the 
whole of the 1980-81 financial 
year. 

But the jewels in the policy 
were a £2bn power station con- 
tract won by GEC in Hong Kong 
and the apparent success of 
Davy McKee, part of the Davy 
Corporation, in winning accep- 
tance as leader of an Anglo- 
French consortium for the 
Indian steelworks in Orissa. 

The change in the Indian 
position and the relegation of 
Davy McKee to that of a poten- 
tial equipment supplier is 
therefore a blow both to the 
Government and the policy it 
has adopted. 

Bujt the loss becomes more 
serious seen against the back- 
ground of the restrictions placed 
by the Nigerian Government on 
its economic expansion and 
hence on the levd. of imports 
it is prepared to accept. 

The effect of such losses on 


employment opportunities in 
the UK is uncertain, but bad 
Davy’s original plans in India 
gone through, it is calculated 
that the sub-contracts would 
have provided 50,000 man-years 
of work. 

Indeed, it is the spin-off effect 
on industry as a whole that has 
been one of the reasons under- 
pinning tire Government's policy 
of winning a greater degree of 
coUabozatioa with the private 
sector to win major project 
business. 

In the early stages of the 
present Government, the policy 
was less marked. In fact, Mr 
Cedi Parkinson, when Minister 
for Trade, warned against the 
use of fatty financial packages 
to win contracts for companies 

Such inhibitions seem to have 
disappeared. When he was 
Trade Secretary, Mr John 
Biffen argued that the use of 
official finance to back project 
bids was a more effective 
means of public spending than 


propping up lame duck com- 
panies. It succoured the strong. 

This sort of attitude suggests 
that the final framing of a 
financial package for the Indian 
steelworks would not have been 
a -major constraint had Davy 
and the Indian Government 
been able to agree on an equit- 
able price for a revised plant 
plan. . 

May 15 was technically the 
last day for the signing <of 
financial agreements carrying 
an export credits interest rate 
of 7.75 per cent— that being 
the minimum . internationally 
agreed rate for credits on which 
there was a commitment made 
before last November. 

But few in industry doubt 
that the Government -would 
have found a way round the 
rules if necessary. ' 

The reason for such aggres- 
sion is clear. Project business 
Is still available in industrialis- 
ing countries at a time when 
UK markets in the developed 



Mr Peter Bees, Minister for 
Trade: involved in the attempt 
to safeguard Davy McKee’s 
Indian steel plant plans, 


world remain depressed. f 

Further, as the National \ 
Economic Development Council , 
pointed out last year, "over- 1 
seas projects arising mainly 
from the industrialisation o£ 
the developing countries offer * 
one of the growth markets of 
the 1980s. Major projects help ! 
to establish a strong national ; 
presence on these countries , , 
which can open the door to 
further opportunities for a wide , 
range of industries.”- « 

The UK Government has been f 
trying to help unlock the door . 
to Indian opportunities, but 
Davy's setback emphasises that 
in the last resort there is only I 
a limited amount official inter- - 
vention can achieve. { 


New Issue 


This adrartMOMot appears as a matter of record only. 

Bubo bearer bends have boon add outside it* United States of America, 


May14»l982 


Irtlorld Economic Indicators 


SHIPPMG REPORT 


TRADE STATISTICS 


PHILIP MORRIS INTERNATIONAL CAPITAL N.V. 


DM 100,000,000 

8%% Bearer Bonds of 1982/1990 


Irrevocably and Unconditionally Guaranteed by 



PHILIP MORRIS 

Incofporated 


-Stock Index No. 469 435 - 


US. Sbn 

Exports 

Mar. *82 
1&602 

Feb. *82 
18.704 

Jan. *82 
18.737 

Mar.’S! 

21378 


Imports 

20349 

19J090 

22529 

214129 


Balance 

-1.747 

-0387 

—44)92 

-0349 

W. Germany DMbn 

Exports 

41.77 

345 

314 

335 


Imports 

3036 

308 

303 

33.9 


Balance 

4-641 

+3.7 

+1.1 

-Ol 

Italy Lirebn 

Exports 

8,932 

7585 

7.761 

5350 


Imports 

10040 

10,516 

9370 

7,114 


Balance 

-1,108 

-2,931 

-1509 

-1564 

France FFrbn 

Exports 

50J73 

5155 

5154 

4531 

** 

Imports 

55.18 

5653 

5859 

4851 


Balance 

-44S 

-5J8 

— 74)5 

-351 

Japan Sbn 

Exports 

12.140 

10246 

14342 

13.727 


Imports 

1Z130 

114)45. 

12.020 

7T516 


Balance 

+0J0TO 

-OJW 

+1222 

+1111 

UK- On : 


Feb. *82 

Jan. *82 

Dee. *81 

Feb. *82 

Exports 

4453 

4278 

/ 4561 

3.807 

r 

Imports. 

4JE79 

4.410 

4326 

3473 1 

.t 

Balance 

+0.174 

-0132 

+0335 

+0334] 

Belgium BFrbn 



Dec. *81 

Nov. *81 

Jan. *81 ! 

Exports 

153.981 

192.410 

179376 

142580 


Imparts 

184769 

190249 

195323 

174.177 


Balance 

-30788 

. -1539 

-16447 

-31597 

Netherlands Hbn 

Exports 

Dec. *81 
14.904 

Nov. VI 
15548 

Oct. *87 
15581 

Dec. *80 
11931 


Imports 

74435 

7*237 

74.78? 

74.708 | 


Balance 

+0469 

+ 1.777 

+0.900 

-1.177 ! 


Chinese look abroad 


BY ANDREW FISHER 


WHILE WORLD shipping and 
shipbuilding markets remain 
stuck iu the doldrums, the 
Chinese are eagerly building up - 
their contacts with foreign ship- 
owners. •' 

In line , with China's gradual 
emergence as a minor force on 
the shipbuilding scene, the 
Shanghai Shipbuilding Corpor- 
ation plans to deliver eight ships 
totalling 260,000 tons to owners 
around the world this year.' 

The official Xinhua news 
agency said these eight ships ~ 
would be among 67 to be deli- 
; vered by the company in 1982. 
i It will also build oil rigs and 
supply ships. 

So far this year, Shanghai 
Shipbuilding has signed deals 
with 19 companies in the UJS., 
France, Singapore and Hong 
Kong to export 52.8m of ship 
equipment 

Four U.S. companies are also 


lUtilO 


discussing with the corporation 
the possible building of pleasure 
boats from glass fibre reinforced 
plastics with their, blueprints, 
materials, and equipment 
Chinese shipbuilding com- 
panies, which, have been prepar- 
ing ifor a greater Impact on 
world markets, have been suc- 
cessful in winnuag orders from 
such foreign' ' owners' as 
Wheelock Warden in Hohg 
Kong. British Shipbuilders” is 
also keen on building np an 
association with Chinese yatds 
so that, orders could be split 
between the UK and China' ' • j 
For both the tanker and dry ' 
cargo markets, last week was 
again 1 lacklustre. Denholm 
Coates said' there was little 
reason for optimism, in dry 
cargoes, though Russian harvest 
forecasts encouraged thoughts 
of substantial Soviet grain 
imports is 1982-83. 


Offering Price; 100%% 


Dresdner Bank 

AWiengesellachaK 

Deutsche Bank 

AMtengoseliachafl * 

Swiss Bank Corporation Internationa! 

mated 

Union Bank of Switzerland (Securities} 


ABD Securities Corporation 
Aim Dhabi In v estme n t Company 
AlahG Bank of Kuwait (KS4X) 
Algernons Bank Nederiand N.V. 


DaHchl Kangyo International 

United 


Lloyds Banklntemallonal 

located 


Dabra Europe United 


Richard Dans & Co. Bankters 

vara. Hans W. PKMn 


LTCB International 

United 


American Express Bank 

latenuukwalGrMip 


Delbritek&Co 


McLeod Young Weir International 

Un ite d 


Julius Baer International 

United 


Den Darake Bank 

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Bank of America International 

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European Bonking Company 


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This advertisement complies with the requirements of the Council of The Stock Exchange, ft does not constitute an invitation to 

the public to subscribe tor or purchase any shares. 



BRANDS! 


NABISCO BRANDS, INC. 

(Incorporated under toe laws of the Stale of Delaware, United States of America) 


Shares of Common Stock 
(par value $2 per share) 

Authorised 


200,000,000 


Issued and Reserved for Issue 
at 16th April, 1982 (including 
3,383,363 Shares reserved for Issue) 


66,748,564 


Nabisco Brands Inc. is a highly diversified company supplying food products worid-wide. The Company 
through its subsidiaries, manufactures and markets a wide range of consumer products including 
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products and pet foods. In addition, the Company also manufactures food ingredients, toiletries, 
pharmaceuticals, household accessories and alcoholic beverages and related products. 


The Council of The Stock Exchange has admitted to the Official UsttheaboveTssuedSharesof Common 
Stock, par va(ue$2 per share, Particulars reMng tothe Ccaripany are available inteBctelStatistteal . . 
Services and copies of the statistical cards may be obtained during usual business hours on any 
weekday (Saturdays excepted) up te and including 31st Max 1 982, from: 


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New Court, 

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London WCiV7PB . 





171982 


5 


I*.,. 




UK NEWS 



bl ft Ministers ready 
to counter oil 
depletion calls 



BY RAY DAFTER, ENERGY EDITOR 


M 


/s 

V v 


ao$ 


4C 


.. \rtiiP 


ENERGY MINISTERS are pre- 
paring tn rebut any calls for 
North Sea cdUdepletiaiL mea- 
sures which may come tomor- 
row from members of a Com- 
mons select committee. _ . 

Mr Nigel Lawson, Energy 
Secretary, and his ministerial 
team have mo immediate plans 
to curb North Sea production 
though they have reviewed ' 
options for months. 

; Tomorrow the energy select 
committee is expected to, pub-' 
Jish a. report : on depletion 
policy. Almost certainly some 
members - will say- lack of 
measures stems from Treasury 
interest in raising oil revenue. 

■ In" the hearings members 
pressed those testifying to com- 
ment on whether depletion 
policies were led by the Energy 
-department or Treasury. 

The debate is intensifying 
because the UK is producing 
.more oil than it uses. Britain 
having last year reached self- 
sufficiency the production rate 
. has risen to almost 1.9m barrels 
a day, 19 per cent more than 
.consumption. 

, Although the industry expects 
.little demand growth in the 
.next few years, North Sea out- 
put is Wkely to grow. Energy 
.Department forecasts say pro- 
duction next year could be 
between l.Sra b/d and 2.3m b/d, 

' and by 1985 1.9m b/d to 2.6m ' 
b/d. 

. The UK is one of few oil- 
producers continuing to pump 
at maximum in face of surfeit.. 
Unlike members of the Organi- 
sation of Petroleum Exporting 
Countries, however, the UK, and 


the British National Oil Cor- 
poration. opted to lower prices 
to maintain . demand for exude. 

The .Government has said 
only that it will operate a flex- 
ible depletion policy. There was 
a ministerial suggestion that 
two field -develop me at projects 
be decayed to slow down future 
production. 

BNOC’s Clyde 'Yield was 
delayed by the Government 
for two years, more in Public 
Sector Borrowing Requirement 
interests than for depletion 
reasons. 

The other, Phillips Petro- 
leum's T Block complex, was 
shelved by the companies 
because of tax uncertainties, oii 
prices and production tech- 
nology. 

Oil industry executives say 
delay of the T Block and other 
fields, like SheU-Esso's Tern, 
prospect and British Petroleum’s 
Andrew find, is a reason not to 
impose controls. 

They say that development 
delays and production prob- 
lems are combining to form 
their own controls. For instance, 
Texaco hoped that by the end 
of this year its Tartan Field 
could have been yielding almost 
90.000 b/d but because oT reser- 
voir problems average output 
will be 15.000 to 20,000 b/d only. 

Latest industry estimates sug- 
gest that Britain’s self-suffici- 
ency period, could be short- 
lived, anyway. Output from 26 
fields in production or under 
development is expected to fall 
sharply , in the late-1980s, to 
1,8m to 2m b/d by 1990 and 
about 1.5m b/d. by 1995.- 


Ministers to decide on 
local authority penalties 


V BY ROBIN PAULEY 

MINISTERS meet today to 
.decide what action to take 
against English local authorities 
which have budgeted to over- 
. shoot Government spending tar- 
gets for 1 982-83. Between 
.them, the overspending councils 
are set to exceed the targets by 
;;£1.4bn. 

- The Treasury is pushing for 
-. N new penalties of £500m to be 
'imposed by the withholding of 
grant. This would result-in a. 
direct cut in. spending because,, 
once the Local Government 
. Finance (No 2) Bill is on the 
. statute book, local councils will 
no longer have the right to re- 
. coup the loss by levying a sup- 
plementary rate, 

. But a growing number of 
ministers is, apparently, lean- 
-ing towards the view of Mr 
Michael Heseltine. Environment 
Secretary, who feels that no 
penalties should he imposed. 
This is because any grant re- 
ductions would hit all councils 
equally, not just the cver- 

■ spenders. 

Local authority representa- 
tives will learn the outcome on 
Wednesday when they meet 
1 ministers at the Local Govem- 
;ment Finance Consultative 
Council. 

) The £1.4bn is 7.7 per cent over 

■ Government targets and would 
‘ have been £2.4bn or 13.2 per 

cent if the Government had not 
> raised the target figure by £lbn 
? when the annual rate support 


-grant settlement was made last 
year. 

English councils already stand 
to lose about £300m through 
existing grant reductions 
applied differentially because of 
the way they have missed their 
individual targets. But, to get 
the Local Government Bill 
through Parliament, Mr Hesel- 
tine had to agree! to. amend- 
ments which make it impossible 
2o. apply different aJ penalties 
after the start of. the financial 
year. 

Mr Heseltine, with influential 
support from senior ministers, 
is arguing that this would cause 
far more trouble than it is 
worth among thrifty Conserva- 
tive councils, which would also 
be severely penalised while 
some overspenders would escape 
because they. receive no gram. 
The Greater London Council 
Inner London Education Auth- 
ority and the metropolitan 
counties, all Labour controlled 
and all Government targets for 
abolition, account for a third 
of the overshoot. 

The extent to which Conserva- 
tive councils have helped push 
the overspend to suefr a high 
level is also an embarrassment 
to the Government Unpub- 
lished official figures show that 
273 of England’s 411 councils 
are planning to overspend. Of 
these 152 or 57 per cent are 
Tory-controlled and only 97 are 
Labour controlled. 


Dockland report optimistic 


BY ALAN FORREST 

THE FIGHT to breathe new 
- life into London's decaying 
docklands is taken a stage 
. further by & report published 
today. 

• The report, prepared by two 
of the firms involved it the 

’ eight miles between Tlrwer 
j. Bridge and Beckton and Royal 
Docks, says: “Whatever 

• 4 specticism investors may have 
" had in the past, investment in 

* the docklands by the Govem- 
< ment is a fact The area 


represents one of the prime 
investment areas in the 1980s 
and cannot be ignored” 

The report’s compilers, 
development consultants Nigel 
Moor and Associates, develop- 
ment consultants, and the 
Wigiey Fox Parmerehip, archi- 
tects, discuss the work of the 
London Docks Development 
Corporation, headed by Mr Nigel 
Breaches, chairman of Trafal- 
gar House Investments. 


Black economy ‘declining’ 


BY ALAN FRIEDMAN 

- THE *‘bla<* economy” is in a 

- period of cyclical decline, 
« according to the latest edition 
i of Business Forecast, published 
^ quarterly by the Charterhouse 

Group. ■ • , . 

- The main reason the blacK 
: economy is declining, says' the 

report, *is because the fall in 
> consumer spending power has 
• reduced the amount of money 
available for home improve- 
C ments, a key source of demand. 
™ Mr James Monel, who pre- 

- pared the report, said yesterday 


that as British consumers have 
less disposable income they 
become more selective about 
spending it. 

The black economy had as. 
powerful a business cycle as the 
official economy, he added, and 
there was evidence that it was 
now suffering as well. Mr 
Morrell said the flagging 
demand for bank notes, an 
essential ingredient in the 
black economy, was a further 
pointer to its decline. 


PSBR undershoot likely 


BY ALAN FRIEDMAN 

THE 1982/83 public sector 
s borrowing requirement (PSBR) 

■ may undershoot Government 

i estimates by around £l.5bn, 
•I producing a level of £8bn, even 
i after allowing for a substantial 
• increase in defence expenditure 
and higher spending as a result 
= of the Falklands crisis. 

The May issue of James 
: Ca pel's UK Economic Assess- 
ment says the main reasons 
for the undershoot will be a 
follow-through . of about £2bn 
from I981/S2, about £500m of 
delayed taxesstiH to come 
through fiwn Is! year’s dviT 


servant strike and an extra 
£lbn hi income tax revenues, 

Capet says the Chancellor 
should have about £1.5bn to 
“ give away ” in . the current 
financial year if he wishes to 
stimulate the economy in. the 
autumn and still stay within 
his £9.5bn 1982-83 PSBR target 

The report says destocking 
was still occurring in the first 
quarter and only very modest 
restocking can be expected in 
the second half of this year. 

UK Economic Asscssnient, r 
May. 2SS2, Janies Capei'/s Co. 


Accountants 

challenge 

institute’s 

structure 

By John Moore, City 

Correspondent 

A - ROW is brewing among 
members of the Institute of 
Chartered Accountants over the 
institute's management and 
structure of government. 

A group of members led by 
a manager of Thornton Baker, 
a leading accountancy firm, is 
plann in g to register its dissatis- 
faction at the annua] meeting 
of the institute on .Tune 8. 

Ms Stella Fearnley. a manager 
with Thornton Baker, who is 
acting independently of her 
firm, says the institute's council 
has vested certain executive 
powers of policymaking and 
control of resources in its gen- 
eral purposes and finance com- 
mittee. 

But, she points out, the mem- 
bers and chairman, of this 
executive body are not elected 
by the council, representing the 
membership. 

The president’s advisory com- 
mittee consists of the president 
and all past presidents currently 
sitting on. the council. 

Ms FearnJey says: “The 
council members we elect have 
so effective control over the 
membership of their policy- 
making. committee and the 
choice of president It is worth 
noting that, over the past 16 
years, eight presidents have 
come from four large firms, and 
only two from industry." 


BR comes to those who wait * . . and wait 


THE <L23 from Watton-at- 
Stone to Moorgate this morn- 
ing is the first train to have 
stopped at the village since 
September 1939. 

The reopening of the rehnllt 
little brick station in (he heart 
of the placid Hertfordshire 
countryside marks the cul- 
mination of a determined cam- 
paign by many of the 2,000 
vi lagers who managed to con- 
vince Hertfordshire County 
Council. . the local district 
council and British Rail that 
they needed a station of their 
own, 

Watton-at-Stone, midway 
between Stevenage and Hert- 
ford, is tiny compared with 
Milton Keynes, the new town 
in Buckinghamshire whose 
£16 di marble and plate-glass 
railway station was opened by 
the Prince of Wales last- 
Friday. 

Mr Rowland Harman, divi- 
sional. passenger manager of 
BR at Kings Cross, puts the 
final cost of Walion-at-S tone’s 
new station at just £150,000. 
But for BR as well as the 
villagers the opening of any 
new station is good news, and 
it will be fielding Sir Peter 
Parker, BR chairman, at the 
official opening next month. 

However hard BR’s adver- 
tising tries to convince the 
public that this is the age of 
the train, the fact is that 
station closures in the past 
20 years have been far more 
numerous than the opening of 
new stations or the reopening 
of old. 

BR and the county council 


Hazel -Daffy looks at the reopening of 
Watton-at-Stone Station — after 43 years 


had already had discussions 
about reopening Watton-at- 
Stoue. which Is on a loop off 
the main electrified line 
between Lei ch worth Garden 
City and London, when, three 
years ago, the village’s parish 
council decided to take the 
mailer up for itself. A parish 
council survey passed, to BR 
Indicated that the village, with 
-nearly three times the 790 
Inhabitants it had when the 
station was closed, ' could 
justify, having trains stop 
there. 

Mr John Green, a parish 
councillor, says £3 was keen 
to go ahead. But it could not 
afford the rebuilding- costs, 
although it agreed to staff the 
station. Undaunted, the parish 
council approached the 
County Council to suggest that 
it include the project in its 
Transport Policies and Pro- 
grammes submission to the 
Government for grant for 1981- 
1982. At the same time the 
parish council agreed to levy 
a lp rate, raising approxi- 
mately £2,000 towards the 
cost - 

After - much lobbying and 
another survey commissioned 
by the county council, 'BR was 
asked to raise its contribution 
to the project from its original 
offer of £10,000. In the event, 
the county, district and parish 
co and is in the surrounding 
areas have come up with just 
over half the total £150,000 


cost, including £3j000 in- vol- 
untary contributions. 

The Importance of access 
to a fast rail link for the 
villager! Is easy to ’ appreci- 
ate. Wat ton-at-S tone, .dissected 
by the ACft2 ■ fit is still 
hoping for its by-pass), has 
grown ’Into a. modest com- 
munity where commuting to 
London, 20- miles- away, is 
common. 

Most commuters are now 
expected to use their own 
station Instead of driving to 
Hertford North as they, have 
been doing. Many families 
say they plan to sell' their 
second ears, and -for the less 
prosperous the. comfort of a 
regular train service into 
Stevenage, the. nearest big 
town, will far outweigh the 
present poor bus .service. One 
mother with two young chil- 
dren explained that it- has 
been taking .her a whole 
morning to go to the dentist 
in Stevenage. It- will now 
take only a -couple of -hours. 

Some of the villagers are 
also canny' enough to realise 
that a direct rail link to 
London can only add to 
property values. 

The strongest imp region 
gained in the village is a 
sense of pride. The -station, 
built by a local contractor, 
is traditional in style. It can 
be operated by just one man. 



Mfehvyn 
Garden 

City- was* Hertford 

BKwgsG xgsf i feMoorgofe 

Everybody has been working 
round the clock to- compete 
the building operation, 
which - includes reinstating a 
bridge, and building -new plat- 
forms and overhead track 
lighting. 

Everything should be spleh 
and span for the official -open- 
ing, although the problem, of 
where to site the car park 
remains unsolved. At the 
moment there is a flourishing 
allotment just behind the 
station, which would he the 
idea] place for a car park, 
but development has yet to be 
agreed. 

- Watton-at-Stone -merits one 
train an hour through the day, 
more frequently during rush 
hour. BR has agreed to con- 
sider stopping more trains if 
demand justifies it. In one 
liUle hit of Britain at least, 
1982 will prove- to be 'the age 
of the train. 


Continental 
to expand 
Liverpool 
soya plant 

By-Lynten McLain 

CONTINENTAL LONDON, part 
of Continental Grain, of New 
York, is to expand capacity at 
its soyabean plant on Mersey- 
side by 50 per cent. 

The first phase of the project 
is to increase capacity at the 
processing plant from the pre- 
sent 2.000 tonnes to 2,400 tonDfts 
a day. Extra -equipment is to 
be installed to bring this new 
capacity an stream by October 
I. When it was built five years 
ago. -capacity was only I,5oO 
tonnes daily. 

■The second phase involves 
boosting capacity to 3,000 
tonnes a day. Engineering plans 
for this phase are nearly com- 
plete and the extra capacity is 
expected to be in use next year. 
The plant is situated near the 
Royal Seaforth Docks grain 
terminal. 

Expansion of the company’s 
processing in Liverpool will 
entail importing 900,000 tonnes 
of beans yearly compared with 
500,000 tonnes at present used. 

Soyabeans come mainly from 
the U.S. and Mr Ronald Ander- 
son, senior vice-president and 
general manager of the world 
processing division of Conti- 
nental Grain, said yesterday 
that the port of Liverpool had 
proved to be the ideal location. 


“The company has 
decided to use cars for 
business travel!’ 




The company has 
decided to use cars for 
business travel.” 


Thecompanyhas 
decided to use cars for 
business travel? 





Many companies hear no evil, 
see no evil and will speak no evil of the 
company car. 

In fact the company car is so much taken 
for granted you may have long since ceased 
to evaluate its real effectiveness. 

The company car no doubt has some, 
advantages. But for longer trips it can be one 
of the slowest ways of gpttingfrom A to B. 

And what exactly are your executives . 
doing all the time they’re in the car? 

They can’t prepare for business meet- 
ings, they can’t relax, they can’t even think. 

And yet you paythem every moment 
they’re in the car 

Pay them in effect for doing nothing. 

Nov£ suppose they leave the car behind 
and take the train.They will be safer 


They will almost certainly arrive 
qmckerThey can relaxin air- conditioned 
comfort on many trains, sit back in ergo- 
nomically designed seats, and give their 
full attention to any businessproblem that 
needs solving 

On Inter-City trains there is ample desk 
space and a virtual; guarantee of freedom 
from interraptions. Which means an 
exceptionally high level of productivity 
Perhaps even higher than that achieved in 
the office. 

Whidimakes the true cost of 
train trawl very low indeed. 

Undeniably, the ear has its 
place. Butfor longer trips, 
especially there's a lot of 
wisdomin opting for the train. 







•Financial Times. Monday 1982 


UK NEWS 


INSURANCE 



Tour trade 
braced for 


last-minute 


bookings 


fly Arthur Sandies 


BRITAIN'S tour operators and 
travel agents are bracing them* 
selves for another spate of dis- 
count marketing and late 
booking, as the peak summer 
holidays season arrives and 
many companies find themselves 
With unsold capacity. 

The Falkland? crisis may have 
contributed towards the present 
■■ flat ’* booking pattern. Anglo* 
Spanish relationships oyer the 
Falklands and UK participation 
in the World Cup soccer tourna- 
ment in Spain are thought by 
some to be adding to the 
nervousness of the market. 

In spito of substantial in- 
creases in capacity by some 
major operators, the overall 
package-tour market is at best 
stagnant and. some sug- 
gest. considerably diminished. 
Britain’s biggest retail travel 
chain. Fickfords. recently sug- 
gested that summer marker 
sales were down by 10 per cent. 

Another worrying aspect for 
many is that customers are 
moving down market. “ Changes 
in both the numbers of sales 
made and the unit coflls are 
almost identical. ’’ says Mr Bon 
Plant, owner of the major 
London suburban chain, 
Plantravel. Allowing for 
this means a 
reduction in real 


Good response to engineering grant scheme 


BY TIM DICKSON 


inflation, 
substantial 
terms. 
People 


are buying fewer 
American holidays, for example, 
and there are more sales of 
tickcts-only tours. This is very 
worrying for retailers who have 
seen their own costs vise.” 

The switch to lale bookings 
by customers creates other prob- 
lems for tour operators. “People 
who book at the last minute 
have far more complaints than 
those who book early.” says Mr 
David Heard, chairman of tour 
operator Buddies. 

Late bookprs choose for price 
rather than product. They are 
often on holidays which are un- 
suitable and. as a result, com- 
plain. 

• The Sheraton Skyline at Lon- 
don's Heathrow Airport has 
been named as the besr airport 
holel in the world by Fielding's 
Favorites, a U.S. counterpart of 
Michelin or Egon Ronay, 

Fielding says: "This house is 
for the opulent traveller only. 
Here is the finest airport hotel 
we have ever seen in the world.” 


ENGINEERING companies 
have responded with unexpec- 
ted enthusiasm to a new £20m 
Government grant scheme. 

Department of Industry 
officials have been flooded with 
applications following the 
launch last month of the Small 
Engineering Firms Investment 
scheme, an initiative announced' 
in the Budget, aimed at encour- 
aging the machine tool industry 
to invest in up-to-date equip- 
ment. 

The response so far is 
thought to have been greater 
than to any similar assistance 
in the past. 

More ' than 700 companies 
have applied and it is under- 
stood that the £20m will soon 


be exhausted. The grants are 
awarded on a firs t-com e-first- 
served basis. 

Ministers are to decide 
whether , more money can be 
allocated to the scheme, which 
officially is due to run until 
March 31 next year. An 
announcement is expected in 
the ftext few weeks. 

Under the. scheme — details of 
which were made available for 
the first time last . month- 
engineering companies with 
fewer than 200 employees can 
apply for a capital grant of one- 
third of the costs of invest- 
ment In certain types of 
advanced capital equipment. 

Qualifying projects include 
stationary metal - working 


machine tools, either sequence- 
controlled or computer numeric- 
ally controlled; nan-robotic 
welding machinery; physico- 
chemical machine tools; metal- 
working machinery incorporat- 
ing lasers or plasma; and 
metrology equipment. 

Assistance, is available on 
the purchase or lease of one 
or two machines, but with a 
minimum cost of £15,000 each. 
A project costing more than 
£200.000 is not eligible. 

Department of Industry 
officials are still analysing the 
response in detail but It would 
appear at this stage that a wide 
range of. companies is 
interested. Many seem lo be 
located in the West Midlands 


and the South East, and on 
the basis of an early sample 
the average project for which 
help was sought was £50,000. 

Letters of intent hare 
already been sent by the 
department to some applicants 
but. because of Civil Ser>ae 
staff constraints, there may be 
"some delays” in processing 
others. 

Grants are payable when the 
department receives a state- 
ment of expenditure by the 
company, corroboration from 
an independent accountant and 
a declaration by the applicant 
that the equipment has been 
delivered no later than Man* 
31 1985. and has been installed. 

The application form makes 


clear, however, that those "who 
place orders in anticipation of 
assistance do so at their own 
risk.” 


The response to the scheme 
will be welcomed by Mr John 
MacGregor, the Industry De- 
partment Minister -with special 
responsibility for small firms, 
and the Engineering Industries 
Association, which lobbied the 
Government before the Budget 
"In view . of the sluggish 
levels of investment by small 
engineering firms in advanced 
capital equipment in recent 
years, the swift take up is most 
encouraging and suggests that 
it has been well targeted,” Mr 
MacGregor said. 


Increase in imports of numerically controlled machines forecast 


BY IAN RODHER 


WEST GERMAN machine-tool 
makers are competing better 
than their British counter- 
parts against imports of 
numerically controlled NC 
machines. 

Studies of machine-tool 
markets by Planning Research 
and Systems, a London con- 
sulting gmup, suggests that 
imports of NC machines into 
West Germany will decline 
slightly from 37 per cent of 
total sales in 1980 to 35 per 
cent in 1985. 


The forecast for Britain, 
however, is that importers of 
NC machines, mainly Japa- 
nese, will increase their share 
of sales from 66 per cent to 
76 per cent. 

This trend is even more pro- 
nounced in the categories of 
NC lathes and machining 
centres. In which Japanese 
producers have specialised so 
successfully in recent years. 

Imports to the UK accoun- 
ted for 69 per cent of the 
£55m sales of N.C lathes In 


1980, but are estimated to 
rise to 74 per cent of £58m 
in sales in 19S5. The demand 
for machining centres in the 
UK is forecast to rise from 
£33.4m in 1980 to £67£m in 
1985, and the share of imports, 
to grow from 61 per cent to 
74 per cent 

In West Germany, however, 
where machine-tool makers 
have been adapting their pro- 
ducts to meet the Japanese 
challenge, it is forecast that 
the importers’ share of- the 


almost saturated market for 
NC lathes will drop from 30 
per cent in 1980 to 25 per 
cent in 1985. 

The West German machin- 
ing centre market is expected 
to grow from £7 5m in 1980 
.to £120m in 1985, and the 
import share to rise from 31 
per cent to 37 per cent. 

NC tools still constitute a 
relatively small portion of 
total machine tool sales, 
accounting for just over a 
quarter in Germany and 


nearly a third in Britain, bnt 
they are the only ones for 
which the market Is growing 
significantly. 

Hie studies predict that the 
value of ail machine tool 
sales in the UK will tall by 
7 per cent between 1980 and 
1985, although NC tool sales 
will rise by a third. Oyer the 
same period, the overall West 
German market Is expected 
to grow by 11 per cent and 
NC tool sales' by nearly 50 
per cent 


Guinness Peat plans an unusual move in raw times 


THE DISCUSSION of plans to 
hive off Guinness Peat group’s 
commodity-trading interests, 
announced last week, is ironic. 
It comes when City financial 
institutions are taking more 
interest in commodity brokers 
on the eve of September’s 
launch of the London financial 
futures market (Liffe). 


John Edwards on the changing commodity-trading scene 


established City commodity 
name. It traces its origins to 
1775. It was incorporated as a 
public company in 1919 and is 
one of the few quoted commod- 
ity groups on the London Stock 
Exchange. 


The merger between Guin- 
ness Mahon and Lewis & Peat 
in 1973 was public recognition 
that commodity-trading in- 
creasingly has become a money 
game, in which changes in. 
currencies' values and money 
itself are equally, sometimes 
more, important than fluctua- 
tions in prices and raw- 
material supplies. 

Lewis & Peat is an old- 


The merger with Guinness 
Mahon, merchant bank, initially 
was highly successful in expand- 
ing the whale group's activities 
and in providing financial aid 
and expertise. • - - 

Instead of being dominated 
by the banking side the com- 
modity division flourished, 
taking advantage of it*- greater 
financial resources and the 
entrepreneurial drive of Lord 


Kissin. the then chairman, who 
is one of those who have 
expressed interest in forming 
a consortium to buy out the 
commodity interests. He made 
the most of the boom years in 
the commodity markets in the 
Iate-I970s. 


The group became one of 
Europe’s biggest commodity- 
traders. with a wide spread of 
interests. Lewis & Peat is best 
known for its world rubber- 
market lead role but it has 
diversified to many other raw 
materials. 

The commodities division has 
subsidiaries in London and 
overseas dealing in many com- 


modities. These include grains, 
animal feeds, vegetable oils, 
sugar, coffee, cocoa, metafls and 
oil 

The group has seats on virtu- 
ally all London commodity 
futures markets, usually under 
the Wilson, Smithett & Cope 
name, and is one of 29 ring- 
dealing London Metal Exchange 
members. ’ 


neariy £10m in Chicago, how- 
ever, made the experience un- 
happy. 

In international terms Guin- 
ness Peat faced direct competi- 
tion across the board from 
groups such as Phillip Bros, 
Cargill, Mitsui and Mitsubishi, 
as well a s the London-quoted 
companies S. & W. Bcrisford 
and Gill & Duffus. 


Its role as a broker, specdalis- 
ing in trade clients, was con- 
fined mainly to Europe until the 
end of the 1970s. Expansion to 
across the Atlantic was inevit- 
able, in view of growing inter- 
national competition from multi- 
national companies. The loss of 


5 


Somewhere around the 
world a branch 
of the key Swiss bank 
is always open for 
business. 


itsetfsfinctfve Harbour Bridge.'. - ' i y[- v '• • \ t . e ^ -.v . ■ . , . 
^'rf > gie.oii 1 sinc3si cenlrc'of Australia,"- -/'•>: .' •' 

1 . li $-[ wo rld-fam o us' Q neta (fa use is a in asterpiccc * ) .-■ ; ' 1 


.t^worid-famous ppCrji Housi: is a masterpiece 



Business 

never sleeps. Whether in 
Sydney, Zurich, London 
or Tokyo, there’s a stock 
exchange open and the 
latest gold fixings, 
indexes, and market ups 
and downs are being 
cabled round the world 
And it’s al- 
ways sunrise somewhere 
and some of our 14500 
employees start work in 
Los Angeles, Bahrain, 


Singapore, Atlanta and elsewhere. The phones start ringing and another 
day begins— with trade financing, foreign exchange, underwriting, in- 
vestment management, etc. etc. etc. 

With branches and representatives on all five continents, 
Swiss Bank Corporation can mobilize resources fast to help its clients 


capitalize on opportunities when and where they arise. 


Calf us : We hold the key to quality banking. 



Swiss Bank Corporation 

Schweizerischer Bankverein 
Societe de Banque Suisse 


The key Swiss bank. 


General ttwiegement in CH-4002 Basis, Aeschenvwstadtl, and in CH-8023 Zurich, Paradeplatz 6. CyerlSO offices throughout Switzerland Worldwide 
network (branches, subsidiaries and rapresentalives):Europe:£dinburBhi London, Luxembourg, Madrid, Monte Carlo, Paris. North America: Atlanta, Calgary; 
Chicago, Houston. Los Angeles, Montreal, New Ybrk, San Fra rxisco. Toronto. Latin America: BogoUt, Buenos Ares, Caracas, Lima, Mexico, Panama, Rio de 
Janeiro, S5o Paula Caribbean: Grand Cayman, Nassau. HRfcTie Enb Bahrain, Cairo, Tehran. Africa: Johannesburg. Asia: Hong tong, Singapore, Tokyo. 
Australia: Melbourne Sydn^; 


Present depressed conditions 
make it difficult if not impos- 
sible for any commodity trader 
to operate profitably or achieve 
a good enough return to satisfy 
shareholders. 

High risk can bring high 
rewards in good times. It tends 
to be disliked by shareholders 
unless higher and higher profits 
continue. The best survivors 
today are multinationals with 
big resources or privately-owned 
partnerships not responsible to 
shareholders. 


Insurance groups 
count cost of winter 


i, .tjl i 


V* 


iitflP 

21 * 


BY ERIC SHORT 


THREE OF the biggest UK 
insurance groups have reported 
pre-tax losses on their world- 
wide .business for the first 
quarter of 19S2 — ■ Commercial 
Union £1.7®, Royal Insurance 
£3.5m and General Accident 
flLlm. 

Industrial companies may 
experience pre-tax losses during 
recession, but it is trousnal for 
an established Insurance com- 
pany to do so. even during econ- 
omic depression. The invest- 
ment income earned on the cash 
flow and reserve: — and a high 
proportion of the Income comes 
from bond holdings — is usually 
more than enough to cover 
underwriting losses, the gap 
between premiums received and 
claims paid out. 

These companies’ under- 
writing losses have soraed in the 
quarter. CU’s were up from 
£25m to £64m, GA r s from £16m 
to £54m, and Royal’s from £18m 
to £64m. Each company recorded 
& substantial rise in investment 
income: CU's rose 40 per cent 
to £54m, GA’s .by 2l per cent 
to £42m, and Royal's by 35 per 
cent to £55m. But this was not 
enough to cover the higher 
underwriting losses. . 

The market was expecting- poor 
results for a variety of reasons 
but was taken by surprise at 
so dramatic a deterioration. The 
results from these companies 
have thrown into stark relief 
the problems currently facing 
UK insurance companies. 

All three blamed their poor 
results almost entirely on tlie 
blizzards, floods and storms in 
Britain in December and 
January. They cost the CU and 
GA about £26m each, and the 
Royal £40m, in burst pipes, 
flooded houses and collapsing 
roofs. 

Tliis was far higher than 
indicated earlier this, year when _ 
the companies reported their 
1981 results. The overall costs 
of the bad weather to the UK 
insurance industry could be 
£300m. The British Insurance 
Association could have a final 
figure by the end of next 
month. 

But providing' ' insurance 
against bad weather is one of 
the reasons for insurance com- 
panies. They have. . however, 
been competing keenly and have 
had to maintain or cut premium . 
rates. Rates in commercial 
business have been reduced by 
40 per cent or more. 

This competition has been par- 
ticularly intense since 1979 


when two successive mild 
winters, in 1979-1980 and 1980- 
2981, enabled insurance com- 
panies to get by with rates 
which were totally inadequate. 
The consequences are now evi- 
dent following last winter's 
storms. 

' But none of tire three corn- 
parties has any intention as yet 
of increasing its rates — 
certainly not premium rates for 
domestic household business. 
All were non-commital on local 
rates. 


Although the UK accounts of 
these companies should return , 
to pre-tax profit over the next 
six months, the trade outlook 
fur UK business remains poor 
because of the keen competi- 
tion. There will be a clearer l 
picture later in the year when j 
all insurance companies report : 
their half-yearly results. Many j 
companies do not report at the 
quarterly stage. * 

There is little doubt that ' 
insurance companies are gamb- , 
ling on mild weatheT next j 
winter. A repeat of last winter's J 
conditions could be disastrous 
for some of them. 

U.S. business was also - 
affected by the weather. Freak 
snowstorms hit the southern 
“ sunshine ” states where these 
three companies have been 
expanding recently. 

The weather made the poor 1 
trading conditions of tire U.S. , 
worse and only partly accounted / 
for. the underwriting losses of ' 
the" three companies. They : 
doubled for CU and GA and * 
tripled for Royal. U.S. business 
has been depressed for some j 
years, with no signs of a 
recovery. j 

The one bright spot in the 
results was that underwriting | 
losses in Canada and Australia ^ 
seemed- to have stopped rising. ! 

The Canadian account does not 
seem to suffer unduly from had '■ t * 
weather since snow, and frost is 
the norm for winters there. The 
underwriting losses in both 
these " countries, however, 

remain high and the three are 
now taking steps to cut out 
unprofitable business. 

The problem facing insurance t 
companies In times Of severe <L < L i 

competition and inadequate 

rates is that if they do nothing ' 
claim costs and underwriting 
losses increase. I£ they take . 
corrective action they loss t . 

business which results in higher ' 
expenses and a cut in invest- 
ment income growth. “ 



BUSINESSMAN’S DIARY 


UK TRADE FAIRS AND EXHIBITIONS 


Date Title 

Current British Music Fair (01-730 2628) (until May IS) ... 

Current London Furniture Show (01-385 1200) (until May 19) 

Current International Contract Furnishing and Interior 

Design Exhibition— INTERIOR DESIGN INT 

(01-540 1101) (until May 20) 1... 

May 18-21 International Exhibition and Conference for the 

Pharmaceutical, Cosmetics, Toiletry and Allied 

Industries— INTERPHEX (01-747 3131) 

May 19-20 Direct Marketing Fair (01-251 3546) 

May 19-21 Chelsea Flower Show (01-834 4333) 

May 24-28 International Heating, Ventilating and Air Con- 

ditioning Exhibition EXPOCLIMA/HEVAC 

(021-705 6707) 

May 24-31 World Wine Fair and Festival (0272 213381) 

May 25-28 International Word Processing Exhibition and 

Conference (01-405 6233) 

Manchester Motor Show (0602 51202) 

Consumer Electronics Trade Exbn. (01-486 1951) 
International Wine and Spirit Trade Fair (021-705 

6707) 

Fine Art and Antiques Fair (01-385 1200) ; 

•* Times '* and " Sunday Times '* Business to 

Business Exhibition (01-729 0677) 

Tunnelling T52 International ' Exhibition and 
Symposium (01-346 3471 j 


Venue 

NEC, Birmingham 
Earls Court 


Olympia 


Met Exbn. Hall. Brighton 
Kensington Exhibition Centre 
Royal Hospital, Chelsea 


NEC, Birmingham 
Bristol Exhibition Centre 




May 29-June 6 
May 30-June 2 
June 1-4 


Wembley Conference Centre 
Belie Vue 
Earls Court 


June 3-12 
June 5-9 


Olympia 

Olympia 


June 7-11 


Earls Court 
Brighton 


OVERSEAS TRADE FAIRS AND EXHIBITIONS 


May 18-22 
May 19-23 


Mav 25-27 ... 
May 25-29 ... 
May 30-June 


June 3-10 


June 445 
June 6-9 


June 7-12 
June 10-15 


June 13-18 


International Clothing Machine Fair (01-409 0956) 
South East Asia's International Machine Tools 

Exhibition— MATEX (Q 1 - 6 S 1 7688) 

Europe Software Exhibition (01-486 1951) 

International Wine Exhibition (0727 63213) 

National Textile Industry Trade Fair — FENIT (01- 

486 86S6) 

Internal inn. t! Plastics and Rubber Exhibition (01- 
439 3964) 

World Properly Exhibition (01-581 2131) 

International Electrical Exhibition and Congress — 

INTELECT (01-222 0466) 

Position tu International Shipping Exhibition 

(Athens 32.3I.S73) 

Internal innal Agricultural Animal Husbandry and 
Tlnrticuliural Exhibition and Conference — 

ELMIA-LANTBRUK (0732 850457) 

International Mediral Laboratory Exhibition 

(01486 S730) 


Cologne 


Singapore 

Utrecht 

Basle 


Sao Paulo 


Paris 

Singapore 


Cairo 

Piraeus 


Jonkoping 

Amsterdam 


* 


BUSINESS AND MANAGEMENT CONFERENCES 


May 17-21 Institute of Personnel Management Selecting the 

„ right candidate (01-946 0100) Whites Hotel, W2 

May 19 The Filtration Society: Cost efficient filtration (01- 

„ _ . ,686 6330) Cora Hotel, WC1 

May 20-21 McCiraw Hill Conference Group: The Platt’s 1982 

Petrochemical Conference (New York (212) 

__ 997 4931 j . Amsterdam 

May 24-25 The Economist: Video Conference— Programming 

and Finance (01-670 540 Of (part of Inter- 

,, . national Video Week) National Film Theatre 

May 24-^5 AMR _ International /Euromoney: Financial tech- 

„ niques <01-2152 2732) London Press Centre 

“ay 27 CBl: Statutory sick pay and self certification (01- 

, _ , 379 7400). Centre Point WC1 

June 3-4 AMP./EurominiRy: Euromarket Law- and Documen- 
tation (01-262 2732) London Press Centre 

June 3 IPS: Computers — introducing purchasing systems 

(0990 237111 Selfridge How, W1 

June 7-8 DIBC (UK); International Bank Operations and 

Systems — issues for the future (01-7S8 5126) City Conf. Centre, London 

June 8 Oycz/JBC: The Petroleum Futures Market . . . one 

year on (01-242 2481) ;... Royal Garden Hotel, W8 

June 9-10 FT Conference: World Electronics— The U.5.. Japan 

and Europe: Competition or Collaboration? 

(01-621 1355) ..... 

Juno- 9 Energy Business Centre: Offshore Projects — 

Norway (61-439 9021) v.. 

June 9 WelswerMcr Adfos: Ulie begins in September (01- 

229 S244) ;. 

June 9-10. FT Conference: World Electronics— The I'fi.,.- - 

Japan an dEurope: Competition or Collabora- 
tion? (01-621 13551 Inter. Continental Hotel, WI 

June 9-11 ESOMAR; Classifying consumers — a need to- 

rethink (Amsterdam 020 44.49.95) Brugge ..- 

June 11 ESC: The Stock Exchange Listing Requirements— _ „ 

the Yellow Book (057282 2711) ' Bewater Cnaf, Centra, SW1 

June 12 The Textile Institute; Narrow Fabrics (061-S34 

8457) Derby . 


5 





Inter, -Continental Hotel. W1 
Cafe Rosad. Wl 
London 


.V'-’s -.«*»- 

vlX, i 

V : ’Z 


.. , 


”-3 i-, 

• oft ' 

cr a 

vv*. V*. 


Anyone wishing to attend any of ike above events vs advised to telephone die orttanisers to 
ensure that there has been no c Hange ja dm details published* 


.1 


v 


l 



Financial Tories Monday May 17 1982 

> UK NEWS - LABOUR 


, 8 ^ \JZ/> 


APPOINTMENTS 


mm 


kk Union dues Esso contemplates payment revolution 

M fifit niffn in * . „ . . „ ... 


real terms’ 

By Our Labour Editor 

THE TUC, which is worried by 
the prospect of faHlng income, 
has produced figures showing 
that trade unionists bare paid 
the same In real terms for union 
services in the past 10 years 
and much less than they paid 
in ithe 1930s. 

Over the period 1970-80, 
unionists paid 0.3 per cent of 
their income on average in dues, 
compared with 1.5 per cent in 
the 1930s. The average con- 
tribution in 1980 was 33p a 
week or £17.16 a year. 

The figures are based on 
returns from 87 unions affiliated 
to the TUC, accounting, for 98 
per cent of membership, on 
December 31, 1980. They show 
total income in that year stand- 
ing at £231,401,771. compared 
with £192,609,077 in the pre- 
vious year. 

However, since 1980 most 
unions have been severely hit 
by the recession, losing up to 
25 per cent of their member- 
ship. Union dues are rising 
sharply to compensate for the 
loss. 

© The TUC- has published a 
pack of materials for union 
activists in pursuit of The cam- 
paign against the Employment 
Bill. It concentrates on per- 
suading employers not to use 
the legislation and on persuad- 
ing employees not to co-operate 
with it 

In particular, workers are 
told not to participate in ballots 
. on the closed shop ' 


ESSO'S three failed attempts to 
reach a productivity deal with 
tanker drivers and depot 
workers, in the past two years 
has left it with archaic operat- 
ing standards. Some local agree- 
ments do not even recognise the 
existence of motorways and 
include vehicle running speeds 
of 24-28 miles per hour. 

The probability of strike 
threa ts over wages in the 
autumn pay round has in- 
creased as Esso drivers have 
seen the earnings of other com- 
panies* drivers rise because of 
successful productivity deals. 

This uncertainty puts off 
customers in a market which 
relies on regular deliveries. 
Esso, like other companies, has 
lost money on refining and 
marketing operations in recent 
months. It needs to. come up 
with measures which will give 
it some commercial advantage 
in a depressed market. 

Workers have thrown out 
productivity offers for various 
reasons. Partly, the price was 
too. low. It was clear to manage- 
ment that Esso was unlikely to 
reach a conventional deal at a 


Brian Groom looks at a radical plan to 
revise the tanker drivers’ pay structure 


price it felt it could afford. 

Therefore, Esso has put for- 
ward an innovatory consultative 
package designed to alter pay- 
ments systems radically, in- 
crease earnings and cut work- 
ing hours, and build new higher 
prod uctivity standards into its 
structure — motorway running 
speeds for instance would be 
40 mph. 

Most British manual workers, 
unless they are on piecework 
are paid for their hours of 
attendance. Esso distribution 
workers are no exception. They 
are paid a guaranteed basic 
weekly, rate for 40 hours, with 
overtime paid at premium 
rates. 

Esso felt that drivers' depen- 
dence . on overtime to " achieve 
high earnings encouraged 
inefficiency during normal 
hours. The previous conven- 
tional deals involved extra pay- 
ments 'for achieving efficiency 


targets. These cou]£ be reduced 
if targets were not maintained. 

However, the proposed new 
deal for. the .950 drivers — which 
is still only an outffne — -would 
seek to guarantee higher work 
standards by making them the 
basis for calculating basic pay. 
Drivers would be rewarded for 
work completed rather than for 
hoars of attendance. 

The working week would com- 
prise four basic duty periods 
of eight to 11 hours, varying 
according to workloads. There 
would be a fifth voluntary duty 
period, but beyond that Esso 
would use -contractors. 

. Drivers would operate 
schedules, and wooid be paid for 
“schedule hours” calculated by 
agreed standards. That 
schedule-hour rate could be 
about £4J20, compared with the 
current base rate of £2.84. re- 
flecting the built-in higher pro- 
ductivity requirement. 


Items such as overtime, pre- 
mium payments. holiday 
bonuses and long-service awards 
would no longer be paid. Un- 
social hours payments would re- 
place sbift-pay. 

Arrangement for the ■ -750 
plant operators and mechanics 
would be similar, but would 
retain a larger element of pay- 
ments for attendance. The deals 
would be reviewed annually. 

Shop stewards are due to 
meet the company, for further 
consultations on the plans, prob- j 
ably at the end of May. If there . 
is a basis for negotiations Esso 
will draw up a formal offer. 
One possible difficulty is that 
the Transport and General 
Workers’ Union might have 
problems assessing the proposed 
new system because it is not 
easily comparable with the old 
one. 

On present thinking, drivers . 
might get another £30 a week 
on total average earnings of . 
under £180. However, the union | 
might not consider this high i 
enough. 


Government urges use of volunteers in health dispute 


BY OUR LABOUR EDITOR 

A GOVERNMENT circular on 
the use of volunteers in 
hospitals daring industrial 
action, may receive its first test 
in the coming week. 

. The Government emphasised 
over the weekend that it would 
support health authorities 
which brought in volunteers to 



COMPANY NOTICES 

NESTLE S.A., CHAM AND 
VEVEY, SWITZERLAND 

PAYMENT OF DIVIDEND 

Notice is hereby given to shareholders that following a resolution 
passed at the General Meeting of shareholders held on 13th May 
19B2, a dividend for the year 19B1 will be paid to them .as from 
18th May 1982, as follows: 

per share SFrfi5j> — 

less Swiss’ federal withholding tax of 35% • 5Fr.29.75 

net : ■= ’ 5Fr.55.25 




all bearer shares . 

On the other hand, all dividends payable on new registered 


share certificates without coupons will be paid by. bank transfer 


i-im 11 ,,!. 1 ! 1 ,!. 1 ■ 


to the shareholder's account or 


accordance with the instructions received from the. shareholder. 
The dividends are payable in Swiss Francs. Outside Switzerland 
Paying Agents will pay against coupons and assignments in- local 
currency at the race of exchange prevailing on the day of 
presentation: bank transfers will be effected value 1 8th May 1922 
in local currency at rbe rate of exchange prevailing on that date. 
Coupon No. 25 and assignment may be presented as from 18th 
May 1982 to the following Paying Agents of the Company: 

In Switzerland: 

Credit Suisse. Zurich, and its branch offices, 

Swiss Bank Corporation, Basle, and its branch offices. 

Union Bank of Switzerland. Zurich, and its branch offices, 
Swiss Volksbank, Bern, and its branch offices. 

Banque Cantonale Vaudoise, Lausanne,. and its branch offices 
and agencies, . 

Zurcher Kantonalbank, Zurich, and its branch offices, 

Berner Kantonalbank, Bern, and its branch office:. 

Zuger Kantonalbank, Zug. and its branch offices, 

Banque de Z’Ecac de Fribourg, Fribourg, rnd its agencies, 
Darier & Cie, Geneva, 

Lombard, Odier & Cie, Geneva, 

Pictet & Cie. Geneva. 

Handelsbank N.W . Zurich, and its branch office. 

Bank Leu Ltd., Zurich, and its branch offices. 

In Engl and? 

Swiss Bank Corporation. London. 

Credit Suisse, London. 

Union Bank of Switzerland. London, 

In the United States of America: 


Morgan Guaranty Trust Company of New York, New York, 
Credit Suisse. New York. 

Swiss Bank Corporation, New York, 

In France: 

Credit Commercial de France, Paris. 

Banque de Pari* et des P3ys-Bas, Paris, 

In Germany: 

Dresdner Bank AG, Frankfurt/Main and Dusseldorf. 

In Holland s 

Pierson, Heldring & Fierson, Amsterdam. 

In Austria: 

Girozentrale und Bank der osterreichischen Sparkassen AG, 
Vienna. 

Ki®"' Th ' Bo, " ) •* 0ir " ws 



PANAMA 

PA YMENT OF DIVIDEND 

Notice it hocei/Eieco to thtteholdett rt«i follotting , te , o |,,,| o n 
passed by the Board of Directors on 27th April 1982 
a dividend for the year 1981 of USS8^- 

______ .hare will be paid to them as from i8th May 1982. 

The payment 5 of thJ dividend will be effected in the same way 
as for ^the Nestle bearer or registered shares to which the 

li n «nfoml^ a with t “he ed O»mpany's Articles ofi Incorporation. 
couSn No. 25 wd assignment should be presented for payment 
at -Ste same time as Nastlfi SA.'s dividend coupon No. 25. or 

4oll»~ Oottidc ,h. Uoitcd 
Srates Wing Agents will pay in local currency at the rate of 
«S g rprevailing on the day of presenradon; bank transfer 
55, b * effected in local currency at the rate of exchange 
prevailing on T8ch May 1982. 

a!b “.“w Th ‘ B-rd -f Director, 


cover the effects of the cam- 
paign of disruption being 
organised by health unions in 
protest! -against the Govern- 
ment’s refusal to increase a 4 
per cent pay offer. 

However, the use of volunteers 
would' breach an agreement 
between. the health unions and 


the voluntary organisations, 
which lays down that any other 
than normal voluntary activities 
—such as patient counselling, 
flower arranging and letter 
writing — would be regarded 
as strikebreaking, and could 
trigger an all-out strike. 

-• Mr Norman Fowler, the 


Health Secretary, said at the 
weekend that he wanted to find 
‘‘a new permanent system for 
determining pay rises, some- 
thing entirely new that will 
avoid these confrontations and 
crises He repeated that there 
was no further money available 
to increase the offer this year. 


Apex backs 

economic 

assessment 

By Our Labour Staff 

THE ASSOCIATION of Pro- 
fessional Executive, Clerical and 
Computer staff yesterday be- 
came one -of the first unions 
to back the idea of a national 
economic assessment covering 
incomes. 

*On NEC advice, its annual 
conference in Blackpool threw 
out a motion supporting the 
1981 Trades Union Congress 
decision favouring free collec- 
tive bargaining. 

It backed the TUC Labour 
Party liaison committee’s call 
for an agreement between 
unions ami a future Labour 
government on allocating -re- 
sources to public, spending, 
investment and private con- 
sumption, and on the distribu- 
tion of national income among 
profits, ti ming s, rents and bene- 
fits. 

Mr Roy Grantham, general 
secretary, sadd: ° When the 
next Labour Government ex- 
pands the economy and creates 
employment in tins way it would 
be folly to ignore the financial 
pressures that it will generate. 

The conference also agreed to 
press ahead, with amalgamation 


Miller to become head 
of Engineering Council 


Apex Is in financial (trouble 
after redundancies caused a 
devastating loss of membership. 

Talks on a confederation are 
taking place with the General 
and Municipal Workers Union 
and the Electrical mid Plumb- 
ing Trades Union. 


Dr Kenneth Miller, managing 
director of APV Holdings, is to 
become tbe first director general 
of THE ENGINEERING COUN- 
CIL and will take up the full- 
time appointment. bn July 1 1982. 
He was a -member -of the Com- 
mittee for Industrial Technology 
from 1972 to 1976 and chairman 
of the Steering Committee for 
Manufacturing Advisory Service 
from 1977 until earlier this year. 
* 

Mr Roger Blackman, manag- 
ing director, Surgical Equipment 
Supplies, has been elected presi- 
dent of the ASSOCIATION OF 
BRITISH STERILIZER MANU- 
FACTURERS. Mr Keith Fazzani, 
marketing director. Astell He ar- 
son mid Mr Stuart May cock, sales 
manager, British Sterilizer Com- 
pany have been elected vice- 
president and secretary of the 
association. 

★ 

THE ALLIED BREWERY 
TRADERS ASSOCIATION has 
appointed Mr Wilfred John 
Hipklns, executive chairman of 
Reddish Chemical Company and 
Reddish Detergents, its chairman 
from June 1. Currently vice- 
president of the Society of Dairy 
Technology. Mr Hipkins has 
served for many years on the 
regional committee of the CBI. 
- k 

Mr D. L. Murison, executive 
chairman of the London board 
of the Bank of New South Wales, 
has been appointed chairman of 
tbe BRITISH OVERSEAS AND 
COMMONWEALTH BANKS’ 
ASSOCIATION. The deputy 
< 4 wHrmaTi is Mr Max Lnthert an 
executive director of Lloyds 
Bank International 
★ 

the board of THE FOREIGN 
AND COLONIAL INVESTMENT 
TRUST. Sir John Pilcher has 


retired from the board. 

Mr D. J. L. Fitzwilliams has 
resigned from the board of 
F. & C. MANAGEMENT, but , 
remains a nnn-execufive director 
of the The Foreign and Colonial 
Investment Trust. General ■ 
Investors and Trustees and The 
Cardinal Investment Trust. 

*■ 

Mr Desmond J. Forshaw has 
been appointe d tr easurer of the 
ROYAL LIVER FRIENDLY 
SOCIETY. He succeeds Mr C. F. 
Johnston, who has retired. 

* 

Mr O. N. Dawson and Mr A- M 
Raring, both of whom are execu- 
tive directors of F. & C. Manage- 
ment, have been appointed to 
★ 

Mr John Holland has been 
appointed managing direc tor of 
THE SOUTHERN PUBLISHING 
COMPANY, publishers of tbe 
(Brighton) Evening Argus. 
Brighton & Hcwe Gazette, and the 
Leader. He succeeds the late Mr 
Frank Chadwick. \ 

Mr Holland has been manager 
of Thp Southern Publishing . 
Company, a division of West- 
minster Press. since 1979. * 

★ 

Mr David Northway has been ' 
appointed chief executive of ’ 
HARE INDUSTRIES. Binning- I 
bam. He was managing director 
of BSA Sintered Components. 

★ 

Mr D. J. Horder has been 
appointed a director of HOWSON 
F. DEVITT & SONS, part of tbe 
Devitt Group. 

★ 

Mr James O'Neill (52) has been 
appointed to the newly-created 
post of marketing director with 
the CUMBERNAULD DEVELOP- 
MENT CORPORATION vritfc a 
wide-ranging remit for the attrac- 
tion of employment and industry. 




<TO JAPANESE 

One 

Matsushita: Leads the way to a “ r 
new audio-visual information society 

Matsigshita Electric is- the largest manufacturer of consumer electric and 
electronic products in Japan. Under four brand names— National, Panasonic, 

Technics and Quasar— it produces a wide range of consumer and industrial elec- 
tronic goods. . . „ ,, , 





One of a series of interviews by 
Mr. Dick Wilson and Dr. Yotaro Yanase 




■‘V • 

. : 

bggs 


The company was founded In 1918 by the legendary Konosuke Matsushita, 
who is still active. 

In the latest financial year skied November 1981, Matsushita Electric 
reported record sales of $16 bihion, 18 percent up front the previous, year on a 
consolidated bass. Net profits were up 26 per cent toS709 million. 

. Matsushita's 23 research laboratories ami the development departments of manu- 
facturing divisions carry out a wide range of R & D activities. The company also 
holds a large number of patent rights totalling nearly 60,000. 

Matsushita has a worldwide network of 72 manufacturing and sales sub- 
sidiaries overseas. About 34,000 of Matsushita's 140,000 employees work outside 
Japan. In Britain, National Panasonic (UK) is responsible for the sales and dis- 
tribution of Matsushita products, while Matsushita Electric (UK) is the manufac- 
turing operation in Cardiff. The three companies including Panasonic Business 
Equipment (UK) employ over 800 people and this includes 480 located at the 
Cardiff plant winch manufactures a wide range of colour television sets and some 
audio products both for the UK and export markets. 


* V- ■«.;* • • 

j? y-'f-j*':- 

p- 'sHiV:'. 


Vi -f v 


IS$M 








ivm? 


A conversation with Dr. Shunkichi Ki- 
saka. Executive. Vice-President of 
Matsushita Electric Industrial Co., Ltd., 
who has lor® led the company's research 
and development activities, is rather like 
a guided tour of science history, on 
which he has written a standard work. 

Names like Karel Capek— who invented 
the word, 'robot'— Newton and Descartes 
appear in his exposition. What goes on in 
the 23 laboratories under him is seen very 
clearly as an integral part of Matsushita’s 
deep commitment to the betterment of 
society. 

“I don't really know exactly what they 
are all doing,” he jokes about Us 13,000 
scientists and engineers. But he proceeds 
to give a masterly overview of the 
research and development efforts of one 
of the biggest world manufacturers of 
consumer electrical goods and elec- 
tronics. 

The research laboratories lack np 
Matsushita’s production base starting at 
the most fundamental level of material 
development and embracing all aspects 
of the production process. 

It is an elaborate structure of central 
and departmental research and develop- 
ment laboratories. Matsushita’s TV 
department,' for instance, has its own 
engineering centre with' 600 researchers 
developing and designing new models 
roughly 2 or 3 years ahead. With tbe new 
flat screen TV and ultra-large screen 
TV, however, they collaborate with the • 
appropriate central lab concerned with 
longer-range developments. 

Matsushita devotes some $580 million, 
or 3.7 percent cf .total sales to R & D and 
this will be raised to nearer 5 percent in a 
few years time. What is the main thrust of 
this enormous programme? 

^ New Generation 
Consumer Electronics ^ 

Kfeakaj We are placing most e m phasi s 
on developing predicts which are an 
extension of existing ones. We call 
them new generation consumer elec- 
tronics. In the aid days we were 
t hinking of bow many more indies we 
could add to the TV. screen. Now we 
are taBringabout 3-dimensional TV or 
SHF satellite technology, or how to get 
a sharper, brighter picture. Hi£h; de- 


finition TV has twice as many scan- 
ning lines .as conventional NTSC sys- 
tems and reproduces a dear, crisp, 
high resolution picture, which looks 
just like a photogravure. 

■ PCM digital audio and video disc sys- 
tems also fall into this category. We 
are also putting R & D efforts into four 
other categories: Office Automation, 
Home Automation, Mecha fannies anti 
Energy-related fields. 

Yanase: Your VHS-type Video Tape 
Recorder has won two-thirds of the 
world market and you supply the pro- 
ducts to European and U.S. manufac- 
turers. What comes next in this field? 

Kisaka: Miniaturization. We have 
brought the weight down from more 
than 22 lbs to only 9 lbs. Meanwhile 

. recording time has been increased 
from 2 to 6 or 8 hours, and we are in- 
tegrating the camera and VTR into 
one 4 1/2 lb unit. In tbe professional 
field, we have also developed a com- 
pact ENG (electronic sews gatheing) 
colour camera/VTR combination for 
broadcasting use, jointly with a lead- 
ing U.S. electronics manufacturer. 

Wilson: What about your completely 
new products or fields? 

Kisaka: I suppose tbe audio-visual in- 
formation society was delayed about 
ten years by the oil crisis and tbe 
world recession, but we are now on the 
point of attaining it, and this is our 
principal new arena. Each household 
or individual will get all the informa- 
tion needed, using sound and pic- 
tures and in hard copy as well. Key- 
board and optical memory system will 
be used in combination. A single op- 
tical fibre can transmit information 
equivalent to more than 200,000 tele- 
phone lines. Matsushita has been 
working cm optical communications for 
more than ten years, and our system 
is being used for 2-way broadcasting in 
the Higashi-Ikoma Community 
Antenna Television system in West 
Japan. We are working with govern- 


ment bodies on this project, which is 
expected to be commercialised next 
year. Character multiplex broadcast- 
ing tests will begin soon, and telephone 
home facsimile win start in Japan in 
1883. 

Yanase: What will be your particular in- 
terest in these programmes? 

Kisaka: We are concentrating our main 
research around the home terminal 
namely the cathode ray tube key- 
board memory. Although we are more 
or less a consumer-oriented company, 
our subsidiary, Matsushita Com- 
munications Industrial Co., Ltd. in 
Yokohama is producing some spe- 
cialized equipment for the project 

Wilson: What are the new products in 
the audio field? 

Kisaka: Digital audio technology is one. 
It uses tbe PCM (pulse code modula- 
tion), which for exceeds conventional 
analogue technology and gives truly 
revolutionary sound reproduction. We 
have developed such systems for both 
tapes and discs. 


Super Miniaturization 


Wilson: Miniaturization will also be a 
feature of this audio technology 
development? 

Kisaka: We prefer to call it 'superminia- 
turizatiorf. But this is not limited to the 
audio field only. What today we put on 
the floor should be on tomorrow's desk. 
What is on the table now should be in 
yaarhamlbag then, and what you carry 
today in a bag should be in your pocket 
i ns t e ad . This tendency will continue in 
parallel with the development of semi- 
conductor technology, which has 
already reduced tbe size of chips by 10 
fold in the past five years, while' their 
functions are 10 time more. 

According to Dr. Kisaka, what is indis- 
pensable far tbe development of such 
new areas of electronics is strength in 
some basic technologies. They include: 
semiconductors such as microprocessors 
and high density memories; computer 
application technology such as voice pro- 
cessing and pattern recognition; new 
components and materials such as 
amorphous and new electro- ceramics; 
and optical technology including optical 
ICs. 

Yanasa: How advanced are you on 
voice synthesis and recognition de- 
vices? 

Kisaka: Voice synthesis is easier than 
recognition. We already have talking 
products, but it wOl be many years be- 



Dr. ShunfcichiKisafea 
Executive Vice President 


fore voice recognition becomes practical 
far general use, especially in small sized 
products. Matsushita participates in the 
national project for a fifth-generation or 
non-Von Ne umann computer. This is 'a 
co mput er with sophisticated voice 
recognition ability which will render 
hum a n l a n guage interpreters obsolete. 


Robotics will be stressed in tbe future, 
and Dr. Kisaka predicts that in 20 or 30 
years time, the function of semiconduc- 
tors will come numerically closer to 
humans so that robots can be made to 
assume 'emotional’ capacity. 

After that it is perhaps a shock to 
come down to earth and ask Matsushita 
about their little-publicized role as an 
importer. Among the Japanese exporting 
manufacturers Matsushita is currently 
one of the biggest importers into Japan. 

Matsushita imports from the United 
Kingdom increased eight fold in the past 
decade and these include such items as 
scotch whisky, welding materials, metals 
and large extraction fans supplied by 
Woods of Colchester. These fans are used 
for clearing purposes on one of the mam- 
moth Japanese tunnel projects and are 
being assembled by Matsushita under 
licence. 

As an example of Matsushita's tech- 
nological cooperation in tbe UK it is now 
conducting, through its subsidiary Pana- 
sonic Business Equipment (UK), internal 
trials with the British Post Office with 
regard to possible future collaboration in 
the development of a mini fox system for 
post office use in INTEL post or TELE- 
MESSAGE type services. 

With its Panasonic TV plant at Cardiff 
in Scuth Wales, its imports of the UK 
goods and technological cooperation with 
the UK, Matsushita demonstrates a 
concern to be fair-minded in world trade. 

But what makes its trade possible in the 
first place is the ferment- of consumer- 
oriented innovation and invention in 
Matsushita’s 23 laboratories. 


Matsushita Electric 

Panasonic* National ‘Technics 


Matsushita Electric Industrial Co., Ltd. 
1006 Kadoma, Osaka 571, Japan 
Tel: (06) 90B-1121 Telex: J6342B 


National Panasonic (U.K.) Ltd. 

300/318 Bath Road, Slough, Berks SL1 6JB 
Tel: Slough 34522 


Matsushita Electric (U.K.) Ltd. Panasonic Business Equipment (U.K.) Ltd. 
Wyncllffe Road, Pentwyn Industrial 107/109 Whitby Road, Slough Berks SL1 3DR 
Estate, Cardiff CF2 7XB Tel: Slough 75841 

Tel: Cardiff 731761 






8 


BUILDING AND CIVIL ENGINEERING 


Hong Kong railway work 


for Marples Ridgway 


Expanding business 
of refurbishment 


MARPLES RIDGWAY. part of 
the Bath and Portland Group, 
has won a third contract for 
the Hong Kong mass transit rail- 
way. The contract, worth 
£ 13.7m, takes the total work 
awarded to Marples Ridgway to 
more than £26m. 

The latest contract involves 
the major excavation and 
advanced site preparation for a 
new station at Causeway Bay 
East, which will form part of 
the "island line” section of the 
rapidly expanding mass transit 
underground railway network. 

The island line will run for 
eight miles along the north 
shore of Hong Kong Island. The 
line is due to open in 1985-36 
and expected to cost just under 
HKSllbn (£lbn). Work has 
already started and contracts 
worth an esrimated HK$ 5bn 
have been awarded. 

To assist with the funding of 
such a large project the Mass 
Transit Railway Corporation, 
backed by the Hong Kong gov- 
ernment, is offering joint ven- 
ture deals to local developers 
to provide new stations. 

Under the terms of these 
deals, developers wil be per- 
mitted to erect major commer- 
cial property developemnts on 
ground above the new stations. 
In return they will provide the 
station; the railway corporation 
will also take a share of any 
future development profits. 

“The fact that station sites 
will also be expected to bear 
substantia] commercial develop- 
ments further complicates ad- 
vance preparation and construc- 
tion work in what are already 
difficult site conditons," says 
Mr Guy Cottam, technical ser- 
vices director at Marples Ridg- 
way. 

Much of the island line passes 
through reclaimed land and at 
Causeway Bay East the water 
table is only two metres below 
the surface. The station is to 
be built on seven levels, the 


lowest around 37 metres below 
ground level. 

Excavation of the site and 
establishing seven floor levels 
will be complex. As a first step 
a diaphragm wall will be sunk 
to a depth of around 20 metres. 
This wi ll keep the sides of the 
hole apart while Marples and 
Ridgway digs down to establish 
the upper first floor level. 

This process of building from 
the top downwards will be 
repeated until firmer ground is 
reached at the fourth leveL At 
this point the rest of the site 
will be excavated, leaving 
Marples Ridgway to establish 
the remaining floor levels: this 
time building from the bottom 


upwards. 

Foundation caissons and rein- 
forced concrete columns will 
ned to be sunk before excava- 
tion of the upper floors can 
commence. 

This is by far the most com- 
plex contract to be carried out 
by Marples -Ridgway for the 
Mass Transit Corporation. The 
work, which started last week, 
is expected to take 33 months. 

Previous contracts awarded to 
Marples Ridgeway involve the 
preparation of access tunnels 
for the construction of the 
island line. Work started last 


ANDREW TAYLOR 


Modernising Tube 
stations in London 


THE SECOND contract to be 
awarded as part of London 
Transport's £60xn programme to 
improve the appearance of the 
capital’s underground railway 
stations has gone to Higgs and 
Hill. 


A £5m management contract 
has been awarded to Higgs and 
Hill Building, to modernise 
station platforms at Oxford 
Circus. Bond Street and Totten- 
ham Court Road. A further £lm 
is being spent separately on 
electrical and signals work. 

The 'latest contract follows an 
earlier award of £3m of work 
to Enfield-based McLaughlin 
and Harvey for improvements to 
Charing Cross underground 
station. 

Work on the Higgs and Hill 
contract which started earlier 
this month is due to be com- 
pleted by October. It will be 


carried out at night to minimise 
disruption, to passengers. 

The whole programme of 
underground improvements is 
expected to take around 10 
years to complete. The .first 
phase of contracts totaling 
around £38m Involves moderni- 
sation and improvements to 
17 of the busiest central London 
stations, including Holborn and 
Kings Cross. 

A further £15m is to be spent 
on improvements to 32 subur- 
ban stations presently regarded 
as being in a poor condition. 
Amounts spent on individual 
underground stations will range 
between £350,000 and flm. 

The remaining £7m is to be 
spent in amounts up to £250.000 
on improvements to 92 stations. 
In total the scheme will involve 
improvements to 141 under- 
ground stations. 

A.T. 


THE GROWING importance of 
refurbishment and renovation 
work in the property and con- 
tracting fields, demonstrated 
over the last decade in other- 
wise depressing statistics from 
the construction industry, was 
emphasised again last week by 
the Miller Buckley Conjunction 
takeover of Benbow (Devon) 
Holdings. 

MBC is the main trading arm 
of the Miller Buckley Group 
which, formed in 1961, now 
reckons to be one of the largest 
privately-owned contracting and 
property groups in the UK with 
a 1981 turnover of £40m. It 
estimates that the commercial 
refurbishment market as a 
whole has doubled in the past 
five years. 

Over the same period. Miller 
Buckley’s involvement in refur- 
bishment has probably trebled, 
partly reflecting the 1970 acqui- 
sition of J. Parnell Sc Son, one 
of the great Victorian builders 
whose name Is retained in 
Miller Buckley Parnell, the 
group’s specialist refurbishment 
company. 

In recent years the group has 
felt that it was still missing a 
particular string to its bow in 
the refurbishment business, 
which is where Benbow comes 
in. 

Benbow is not a big acquisi- 
tion. Its 1981 turnover was 
some £3m, compared with £22m 
for MBC and around £3Qm for 
the construction activities of the 
Miller Buckley Group as a 
whole last year. But it does 
have strategic implications. 

Mr Bernard Reading, MBC’s 
managing director, places Ben- 
bow Shopfitting, Benbow’s prin- 
cipal trading company, "among 
the top companies in the first 
division of the shopfitting 
league.” 

MBC’s workload recently has 
tended to split 60 per cent in 
industrial, and 40 per cent in 


commercial worts. The industrial 
side is “not ordinary," says Mr 
Reading, talking about substan- 
tial contracts for the Property 
Services Agency — including 
telephone exchanges— and for 
the Ministry of Defence. 

But on the commercial side, 
retailing work has not taken a 
significant part. Benbow's client 
list includes banks, building 
societies, retail groups such as 
Boots, Chelsea Girl and Deben- 
hams, and - embassies — -most 
notably the American Embassy 
in London. 

Shopfittmg, says Mr David 
Benbow, the company’s chairs 
man and managing director, “ is 
becoming more of a theatrical 
exercise; changing consumer 
fashions require retailers to 
present a new image to cus- 
tomers more frequently.’’ i 

Previously, says Mr Benbow. 
investment in shopfitting had I 
been made with an intended life 
of 10 to 15 years. “ The invest- 1 
ment now may be smaller in 
real terms,” he says, “but fre- 
quency is the name of the 
game.” The life of a shopfitting 
exercise, he estimates, is now 
down to five years “and a lot 
less in some cases.” 

Mr Reading also says that the 
property development scene in 
Britain’s cities has changed, 
with greater emphasis on re- 
furbishment and renovation 
rather than rebuilding — a trend 
which he expects to continue. 

Taking soundings among 
property professionals like 
architects and major estate 
agents, he discerns the feeling 
that a diversified contractor wifi 
he more interesting to those 
who place refurbishment work 
in general and that Parnell — 
with a range of specialist crafts- 
men in joinery, metalwork and 
electrical services — should 
enable MBC to get a bigger 
share of the quality end of the 
market 

WILLIAM COCHRANE 




r^tli 





SOLIHULL*. READING 




A main stand — - phase 1 of a 
£5ra redevelopment programme 
for Manchester City Football 
Club — is to be built by, the 
north west region of JOHN 
LAING CONSTRUCTION. Work 
on the £lm, 8,000 capacity, all- 
seat stand, which will be equip- 


ped with 32 luxury VIP boxes, 
has just begun and will be 
finished by August ready for 
next year’s league and cup cam- 
paigns. The contract at Main 
Road involves removing the 
existing stand and erecting a new 
steelwork structure topped by 
grp roof units. 


tractor Doric Construction,', is 
£350,000. In the Inverness area, 
the company has won contracts 
with a combined value of 
£500,000 for mechanical services 
for a Clydesdale Bank northern 
headquarters office; a school at 
Fraserburgh; and housing at 
Kingussie. 

dk* 

WIMPEY CONSTRUCTION UK 
has been awarded a £l.Sm con- 
tract by the London Borough of 
Tower Hamlets to build 31 brick 
dwelling on the Highway, El. 
Work, which has just started, 
is expected, to be completed in 
April 1983. 

* 


Biggest roof 


and wall job 


EXPORT CONTRACTS 


Continental look underfoot 


ACCORDING TO Marley Paving 
our roads, ports, industrial areas 
and pedestrian shopping centres 
will have a Continental look in 
the next few years because the 
demand for Intersect concrete 
block paving is becoming more 
popular in the UK 
An integral part, of the urban 
landscape in Holland and 
Germany, this type of paving 
withstands the rigours of 


trucks, cranes and other heavy 
machinery in industrial situa- 
tions throughout Europe. 

The blocks, usually in a 
herringbone design, look attrac- 
tive and have captured the 
interest of planners and archi- 
tects for a variety of town centre 
and other urban developments. 
They come in 100 mm x 200 mm, 
and Marley produces them in a 
choice of two shapes, seven 
different colours and two thick- 


nesses (SO mm and 60 mm) 
suitable either for industrial or 
domestic use. 

Marley says that the blocks 
are competitive in price with 
blacktop and other types of 
road building materials, are 
easy to lay and contribute to 
road safety — motorists leaving 
a fast main road and driving on 
to a surface of paving blocks 
hear a change in tyre noise and 
automatically slow' down. 


FIELDING & PLATT. Glouces- 
ter, a Redman Heeaan Inter- 
national group company, has 
obtained orders far concrete 
. moulding presses worth over 
£700,000 for delivery to the 
United Arab Emirates, Qatar and 
other Middle East countries. Six 
single-mould and three-mould 
presses have been ordered for 
making concrete kerbs and pav- 
ing slabs using the Fielding wet 
mix process. 


Dyform steel strand manufac- 
tured by BRIDON WIRE, Don- 
caster, will be used to support 


the longest cable-suspended roof 
in the world. Altogether 144 
tons of 0.6 in diameter Dyform 
strand are being supplied to 
Gens tar Structures to suspend 
the huge, saddle-shaped pre- 
stressed concrete roof of the 
Calgary Olympics Coliseum in 
Alberta, Canada. The building 
will house indoor events of the 
1988 Winter Olympics. When 
the building is completed in 
December the roof, which is 
elliptical in planform. will be 
441 ft long by 401 ft wide. At 
its highest point it will be 121 ft 
above ground and dip at its , 
lowest to 55 fL . 


Believed to be the most 
valuable roofing and daddlDg 
contract ever awarded in the 
UK worth well over £5m, an 
order has been placed with 
RUBEROID CONTRACTS for 
the South of Scotland Elec- 
tricity Board’s AGR nuclear 
power station at Torness. near 
Dunbar. Lothian. The work 
comprises the supply and fixing 
of metal decking, tbermaS insula- 
tion and high performance built- 
up roofing to the station's flat 
roofed buildings and the instal- 
lation of side wall cladding of 
specially coloured profiled 
aluminium sheeting. 

The buildings include the 
main reactor building and tur- 
bine hail housing the station's 
two 660 Mw reactors, charge 
halt fuel handling sections, etc. 
Roofing and cladding work is 
planned to commence on site 
in August of this year and will 
continue for two to three years. 
Main contractor is Sir Robert 
McAlpine and Sons. 

* 


finishes will be used throughout 
including a polished granite 
exterior. Work has begun with 
completion due In the autumn of 
1983. Willett is a member of 
the UK building division of the 
Trafalgar House Group. 

* 

J. JARVIS & SONS has won 
seven contracts . totalling over 
£5.6m in the south and north 
of England. Largest are at 
Brixton Prison where major 
alterations and a new extension 
are being carried out for the 
Home Office at a cost of £1.3m 
and in Catford a £l-2m British 
Telecom telephone service centre 
is under construction for the 
Property Services Agency. 

* 


A third contract on the Swin- 
brook bousing estate North 
Kensington, bas been awarded 
to JOHN MOWLEM AND CO. 
by the Royal Borough of Ken- 
sington and Chelsea. . Worth 
£1.6m and called phase 2A, it 
involves building two four-storey 
terraced blocks containing a 
mixed development of 42 homes 
on the seven-acre site north of 
Westway. Work has just started 
and completion is due early, in 
1984. 


FORD AND WESTON, Derby, 
has won a major housing con- 
tract, worth £3. 7m. for carrying 
out the first phase of a municipal 
development at Radford East, 
Nottingham. Over 200 dwellings 
are being provided for Notting- 
ham City Council on the 13.75 
acre site, comprising three deve- 
lopment areas. Work, to start 
shortly, will take two years to 
complete. 

* 


WILLETT has been awarded a 
£3.7m contract by A. Peachey 
and Co., a wholly-owned sub- 
sidiary of Peachey Property 
Corporation, to build an office 
block in Mansell Street, in the 
City. The seven-storey office 
building will have a total area 
of about 40,000 sq ft and will 
include a ground floor showroom 
and three flats together with 
some on-site car parking. The 
fully air-conditioned building 
will be open plan to provide 
maximum flexibility for prospec- 
tive tenants. High quality 


J. T. U PARKINSON, Aberdeen, 
have contracts valued at £3.75m. 
Major award is a £3m contract 
for ihe provision of healing, 
ventilation and air conditioning 
systems for the Phase V develop* 
meat of the Shell UK Explora- 
tion and Production headquar- 
ters at Allens, Aberdeen. Main 
contractor is Geo. Wimpey. 
Other contracts include mech- 
anical services for a new office 
building being developed in 
Aberdeen city centre by the 
Fred Olsen Group. Value of the 
contract, awarded by main con-' 


CONSTRUCTION has started on 
a development of 70 flats for ! . 
elderly and disabled people near t 
the Paris Street roundabout in 
Exeter. The £1.5m project, 
awarded to C. S. WILLIAMS 
(TAUNTON) and designed by 
the Exeter office of MWT Archi- 
tects, is being undertaken on 
behalf of the Devon Community ». 
Housing Society, and is being ' - 
funded by the Housing Corpora- „ 
lion. All the one-bedroom flats j - . 
will be linked by a heated cor- i - 
ridor to various common rooms 
and the resident wardens' accom- 
modation. An alarm system will | 
also be available to the tenants ' 
so that help can be summoned. • 

■k 

WIAIFEY'S Middlesbrough office , 
has won three contracts with a [ 
total value of £2m. all for work y ' 
in the north east of England. 

The company will build a 
£7BS,0Q0 TA centre at Cnulby — 
Newham for the TA and VRA, 
which will have offices, messes, 
lecture rooms and a centrally 
situated drill hall. 


Work for the Home Office is 4 rrtrs 
Jued at £745,000. and com- rHgfgf 3 

ieor train hnneo unite nf RW f * 


valued at £745,000. and com- 
prises two house units at ELM 
Borstal at Deerbolt, Barnard 
Castle. 

The third job is for Lang- 
baurgh Borough Council for 26 
houses and bungalows at Ung- 
dale with a value of £415.000. 


vSCAN- 



TELEVISION 



6.40-7.55 am Open University 
lUltra High Frequency only). 
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10.00 You and Me. 10.15-12.05 pm 
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THE WEEK IN THE COURTS 


Chris Dunkley: Tonight’s Choice 


5.40 News. 


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6415 Nationwide. 


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7.20 Bret Maverick, starring 
James Garner. 


Any television service worth its salt ought to produce a 
sizable proportion of programmes that are so good that they 
demand repeating. And the more television channels we get the 
less likely you are to see a good programme first time round, 
so the greater need for repeats. Tonight brings two that are fully 
deserved: BBC 2 starts a re-run of The Hitchhiker’s Guide to 
the Galaxy and ITV gives a second screening to Strike, Granada’s 
account of the birth of Solidarity. 

HHGG started life as an unusually original radio serial, and 
some of us doubted its chances as a television adaptation. But 
some of us were wrong. Though the small screen lacks that 
perfect fluidity in space and time, which radio provides for 
science fiction, it does have countervailing advantages. Andrew 
How e-Davies rightly won an award for his design on the tele- 
vision. version, the graphics are not only unusual hut very funny 
and the sets, while not approaching the magnificence of those on, 
say. “ Star Wars,” are often fascinatingly inventive. 

For the repeat of Strike Leslie Woodbead, in my view the 
best produce r/director of drama documentary in Britain today 
(which probably means in the world) has added a new top and 
tail to take account of events in Poland since the first rushed 
and therefore unpublicised screening last Christmas. 


9.30 am Schools Programmes. 

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Goody. 5.15 Gambit 

5.45 News. 


Uncertainty over accused’s assets 


BY JUSTINIAN 


6.00 Thames News 
Andrew Gardner 
Tricia Ingrams. 


R25 Help! with Viv Taylor 
Gee. 


8.10 Panorama. 


9.00 News. 


Crossroads. 

Nature Watch, 

Coronation Street 
Union Castle. 

World in Action. 

Minder, starring Dennis 
Waterman and George 


DO THE COURTS have any 
power to seize a suspected 
criminal's property, or to order 
the freezing of his bank 
accounts, in anticipation that 
any or some of his assets may 
subsequently on conviction be 
the subject of compensation or 
forfeiture orders? This is a 
question of increasing interest 
to those who are keen to help 
ensure that the fruits of crime 
arc not spirited away by 
criminals, but remain available 
to compensate the victims of 
crime. 


9.25 The Monday Film: 
*’ Shadow Of Chikara." 
starring Joe Don Baker 
and Sondra Locke. 


11.00 The World of Golf. 


1L28 News Headlines. 


1L30 The Computer Programme. 


6.40-7.55 am Open University. 
11.00-11.25 Play School. 

5.10 pm Nene and the ’80s. 

5.40 Souvenirs of Sidmouth. 
6.00 Better Than New. 

6.25 A Moment to Talk. 

6.40 A Family Band. 

7.10 News Summary. 


7.15 The Changing Face of 
Parliamentary Democracy. 

8.00 The Mathis Magic. 

9.00 The Hitch-hiker's Guide to 
the Galaxy. 

9-35 Human Brain. 

10.25 Growing For Gold. 
10.55-11.45 "News night. 


Cole. 

News. 

Strike! 


am Close: Sit Up and 
Listen with Michael 
Hordern. 


t Indicates programme In 
black and while 


All IBA Regions as London 
except at the following times; — 


CHANNEL 


ANGUA 


1.SO pm Anclia Nbws. 5.15 DiH’rent 
Strokes. 6.00 About Anglia. 
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1.20 pm Channel Lunchtime Nawa, 
Wha:*a On Where, end Weather. 5.15 
Emmcrrfsle Farm. 6.00 Channel Report. 
6.30 The Two of Us. 10.43 Chennai 
Late News. 12.40 am News and Weather 
in French. 

GRAMPIAN 


Owed. 4.16 Murphys Mob. 4.4G-5.1S 
S6r. 6.00 V Dydd. 63J-7.00 Report 
Walea. 8 JO-9. 00 r r Wythno*. 


TYNE TEES 


SCOTTISH 


1.20 pm Scottish News. 6.00 Scot- 
land Today. 6.40 Crime Oaafc. 12.45 
am Late Can. 


BORDER 


1-2D pm Border News. 6-00 Look- 
Bround Monday. 6-1S Fashion Today. 
6.30 Look Who's Talking. 10.45 Thriller: 
•• Dial A Deadly Number." 72.00 
Border News Summary. 


9.25 am First Thing. 1.20 pm North 
News. 6.00 North Tonight. 8.35 Hands. 
9.00 Hill Street Blues. 12.40 am North 
Headlines. 


9.20 am Tha Good Word. 9.23 North- 
East News. 120 pm Nonh--Eait News. 
6.16 Ths New Fred end Barney Show. 
6.00 North-Esst News. 6.02 Gambit. 
BM Northern LHa. 9-00 Hill Street 
Blues. 10.46 North-East News 10.47 
Brietinp. 11.30 Lou Grant. 12.25 am 
Lai's Celebrate Ascension Day. 


Four years ago, the Court of 
Appeal gave a resoundingly 
negative answer to the proposi- 
tion that there was any power 
to interfere with a person's 
property, even for a time, for 
the purpose of punishing him 
in advance of his conviction by 
forfeiture or of compensating 
the victim of his wrongdoing. 

Lord Justice Stephenson in 
Malone v. Metropolitan Police 
Commissioner* said the argu- 
ment in favour of such a pro- 
position had nothing to com- 
mend it but its audacity — not 
even counsel for the Commis- 
sioner “could make it viable.” 
If such powers were required 
for the protection of the public 
against crime it was for Parlia- 
ment, not the courts, to grant 
them. 


obviously a serious matter to 
prevent a person using his 
property before he has been 
convicted. 

In the last couple of years, 
the civil courts have begun to 
develop the power to freeze the 
bank accounts of persons 
against whom are claimed to 
have wrongfully deprived others 
of their property. But unlike 
claimants seeking to recover 
their property, the police have 
no proprietary right ' to a 
suspected person's property. 
The police merely have a power 
to Investigate crime, to detain 
any property they may have 
seized for the purposes of 
adducing it in evidence at any 
trial, and to prosecute the 
offender in the criminal courts. 


was impossible to disentangle 
their sources. 

Early this year, the accused 
man was arrested. A few days 
later, the chief constable, think- 
ing that the accused might 
continue to draw on the 
accounts and that the moneys 
would be dissipated by the time 
the case came on for trial, 
issued a writ and applied to 
the court for an injunction 
pending the hearing of the 
action to restrain him from 
withdrawing any further 
amounts. 


form, the creation of modern 
statutes. Before those creations 
the common law could not and 
did not justify the retention of 
such moneys for use for pur- 
poses which did not then exist. 
To extend the common law to 
justify what Parliament bas not 
empowered is to write into the 
statutes that which has not been 
included in them.” 


Whatever rights the victims 
of crime have must be exercised 
in the civil courts, or in the 
criminal courts after the 
offender’s conviction. 


The Court of Appeal heard 
counsel for the chief constable 
and counsel for the Attorney- 
General as an amicus curiae. 
The accused was not present 
before the court, and was not 
legally represented, as the 
accused in the Malone case had 
been. 


GRANADA 


CENTRAL 


1,20 pm Contra! News. 6.00 Central 
Nsws. 9.00 Hill Street Bluea. 10.45 
Laft. Right and Cant**- 11-25 Central 
Hews. 11-30 Barney Millw. tZXB 
Came Close. 


1.20 pm Granada Retort* 1.30 
Survival 2.00 Movie Memories. 6.00 
Private Beniamin. 6.30 Granada Reports. 
9.00 Quincy. 

HTV 


12.27 pm Gui Honeybun’a Magic 
Birthdays. 1.20 TSV/ Nawa Headlines. 
5.15 Emmerdala Farm. 6.00 Today 
South-West. 6.30 The Two of Us. 
10.47 TSW Late News. 12.45 am Post- 
script. 124>0 South-West Weather. 


ULSTER 


120 pm Lunchtime. 4.13 Ulster News. 
5.15 That Monday Evening Feeling. 6.30 
Good Evening Ulster. 6.00 Good 
Evening Ulster. 6.30 Square One. 10.29 
Ulster Weather. 10.45 Church Report. 
11.16 A New Kind of Family. 11.45 
Newt at Badt-ma. 


1.20 pm HTV News. 6.00 HTV Hews. 
9.00 Hill Street Blues. 10.43 HtV News. 

HTV Cymrt// Wales— As HTV Wes: 
except: 12.00-12.10 pm Decw Mum Yn 


1.20 pm TVS News. 5.15 Watch This 
Space - ■ - The: Monday Evening 
Feeling. 530 Coast To Coast. 8.00 
Caast Ta Casa! {continued]. 6.30 
Emmerdal* Farm. 10,45 Baa: Sellers: 
Mr Horn (pert 2). 12.30 am Company. 


YORKSHIRE 


1.20 pm Calandar Nawa. 6.00 
Calender (Emlsy Mow end Belmont 
editions). SJO Calender Countdown. 


It is probably only the 
renowned judicial audacity of 
Lord Denning, aided and 
abetted to a limited extent by 
Lord Justice Donaldson, that 
could pre-empt parliamentary 
action by providing the police 
with power to freeze the bank 
accounts of a person awaiting 
trial on charges of forgery and 
obtaining money by deception 
on forged iortnimento- 
In Chief Constable of Kent v. 

v and another? io days ago. 
the Malone decision appears 
either not to have been quoted 
or to have been ignored, 
although there was a whoHy 
persuasive dissenting judgment 
from Lord Justice Slade. It is 


(S) Stars op honic broadcast (when 
broadcast » VHP) 


RADIO 


RADIO 1 


5.00 *m As Radio 2. 7.C0 Mika Scad. 
9.00 Simon Bates. 11JO Dave Laa 
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David Jensen. 10.00-12.00 John Peel 


night ((Si from midnight). 1X0 am 
Encore (5). 2.00-5.00 You and the 

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Humphrey Lynleton with the Beat of 
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Monday Movie Quiz with Ray Moore. 
10.30 Star Sound with Nick Jackson. 

11.00 Brian Matthew with Round M/d- 


6.55 am Weather. 700 News. 7.06 
Morning Concert (SI. 8.00 New*. 8.06 
Morning Concen (continued). 9.00 
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Schubert 1 5). 10-00 Kenneth Leighton 

(S>. 10.40 Viola and Prana recital fS). 
11.ZD Bruckner. Svmphony No. 7 (55. 
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recital f S> 10.25 The Honeywood File 
by H. B. C-eswe-! d-smar.sed in three 
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A Lullaby By Byre IS). 


RADIO 4 


6.00 am News Br.sfmp. 6 10 Farming 
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with Richard Baker (5). 10.00 News. 
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travel. 11.03 Down Your Way visits 
Bwymrna In the Isle o! Anglesey. 
11.48 Poetry Please. 12.00 News. 12.02 
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Laush with Las Dawson. 12.56 Westher. 
navel, programme news. 100 The 
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9.59 Weather 10.00 The v/erfd Tonight. 
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1Z-0D News. 


The civil courts’ powers are 
limited in other respects. They 
are available only where there 
is a fear that the defendant 
will move h is assets out of the 
jurisdiction, an ability that has 
been greatly facilitated since 
the ending of exchange control 
in 1979. 

In October 1981. the accused 
in the Chief Constable of Kent 
case was alleged to have got 
hold of two or three of a 
woman’s cheque books, and to 
have drawn on her account 
every few days for £800 or £900 
for three months. In all. he 
was alleged to have drawn 21 
cheques amounting to £16.001. 
' These monies were paid, it 
was claimed, into the accused’s 
account with the Bank nf Credit 
and Commercial International, 
through different branches. He 
had also paid in other sums of 
money alleged to have been 
obtained from other persons, 
and he had drawn upon the 
accounts from time to time for 
his own purposes. All the 
moneys were mixed so that it 


Some judicial ingenuity was 
clearly required to circumvent 
the long line of cases— even be- 
fore the decision in Malone's 
case — that indicated that the 
courts had no power to restrain 
the disposal of a man's property 
at the instance of a prosecuting 
authority. Lord Denning pur- 
ported to find it in a section in 
the Supreme Court Act 2981; 
which came into force on 
January 1. 1982. 

Section 37(1) provides that 
“ the High Court may by order 
(whether interlocutory or final) 
grant an injunction in all cases 
in which it appears to the eourt 
to be just and convenient to. do 


It would be "a .mockery 
of the law” if the frauckman 
could always evade an order of 
compensation or restitution by 
disposing of goods or' money 


pending his trial. 

In the Malone 


In the Malone case. Lord 
Justice Roskill (now Lord 
RosJoil. a Law Lord) thought 
file argument for extending the 
court’s powers was impossible: 
“Compensation orders, restitu- 
tion orders and forfeiture 
orders are, in their modem 


The courts' powers to order 
forfeiture generally arc ic any 
even! extremely limited. In 
1980, m a case sometimes 
referred lo as the “Operation 
Julie” case after the name 
given by tbc police to their 
investigation, it was held by the 
House of Lords that there is 
no power to deprive defendants 
on conviction of their profits 
from' the illegal manufacture 
and sale of prohibited drugs.i 
Such a power does, however, 
exist when there is sn identifi- 
able victim of stolen property 
or property obtained by decep- 
tion, as m ihe Chief Constable 
of Kent case. 

Following the substantial 
public dismay at the inabihty 
of the courts to strip criminals 
of ill-gotten gains, the Howard 
League for Pena] Reform in 
June. 1980. set up a high- 
powered eommiitee. under the • 
chairmanship of Mr Justice 
Hodgson, to consider the pre- 
sent law relating to the confisca- 
tion of the fruits of crime and 
to study ways in which the law 
can effectively lay its hands on 
the profits of crime before the 
offender is able tu put them out 
of reach of the authorities.. It 
wiH report next year. 

Meanwhile, it would be better 
if Vne present powers of the 
conns were clarified. The recent 
departure from precedent by 
the Court of Appeal serves only 
to confuse rather than io ad- 
vance Hie cause of offender* 
redress in the criminal Jaw. 
•fl'JSO] Q.B.40. 

* 'Times. Law Report, May 14. 

1982. 

* [19813 A.C. 470. 


feiad 


3 . 

•*er v -,. h 

on. 


'V' f ?*’’4 f - 
Nr *; * I,; - 



■Visors, 

is s ' 




RACING 


he remains one of 30 acceptors 
for the Derby at Epsom on 
June 2. 


BY DOMINIC WIGAN 


A GAP appeared in the nick 
of time for Persepolis and 
Lester Piggott towards the 
finish of the £45.000 Prix Lupin 
at Longchamp yesterday and 
the grey Kalamoun colt swept 
through to vin lor Stavros 
Niarchos. 

Persepolis is clearly a top- 
class colt and it is worth noting 


Second at Longchamp vester- 
day. two and a half lengths 
behind the winner was Alfred's 
Choice, another Group One 
triumph for Zino's handler, 
Maurice Zilber. Alfred's Choice- 
is a particularly handsome colt 
by So Blessed out of Scamper- 
dale. 


• There is no such thing as an 
indispensable racing book 
(whatever the claims of .Time- 
form),' but' one reference work 


which can claim to come closer 
than most to this description 
for Ihe serious backer is 
Trainers’ Record. 

The tenth edition, of ; this 
book has - recently been pub- 
lished' Containing its . usual 
wealth of detail. A complete 
analysis of trainers’ perform- 
ances last year plus a -direct 
commentary based on efforts 
over the past 10 seasons,- ^ often 
gives the backer an entirely dif- 
ferent and improved angle, on 
betting than he might have had 
in the past. 

Trainers’ Record contains the 


details of the winners and run- 
ners for every -trainer at every 
course in 3961 plus a able of 
the -top 10 at* every track based 
on five years’ results. Here, 
for example, we find that Dick 
Horn had seven, winners from 
only 12 runners a* Haydock last 
year,, while 5$ per rent of 
Henry Cecil’s runners :at 
Wolverhampton la the 1977-31 
period have won. * - 


WO hV£XBA3rFto£ 
3.00— Morgan's Oufltt** 


Ssjs 

iVV 


PONTEFRACT - 
2.45— Sttzdeat Venture’ 










Financial Times Monday May 17 1982 


! TECHNOLOGY 


sr: 



EDITED BY ALAN CANE 


Euro-study looks to solar 
cells for future power 


BY MARK NEWHAM in Italy 


BY THE END of the century 
European manufacturers of solar 
photovoltaic cells will be rwaWng 
enough cells each year to 
generate 1,000 megawatts of 
electricity a year according to a 
solar eelctricity study* soon to 
be published by the EEC com* 
mission. This is equivalent to 
the output of an average-sized 
nuclear power station. 

The results of the study were 
announced at the EEC's photo- 
vo 1 talcs conference held last 
week in Stresa. Italy, by Mike 
Stair of British engineering 
consultants. Sir WiHiam Hal- 
crow, which pieced together the 
study for the commission. He 
Europe would have 200,000 
megawatts of photovoltaic 
power plant installed generat- 
ing 10 per cent of Europe’s 
electricity. 

But the 600 delegates from 30 . 
countries were warned by Mr 
Starr that the EEC’s projections 
would be achieved only as long 
as the photovoltaics industry 
continued to receive- substantial 
support from governments and 
other public agencies such as 
support from governments and 
other public agencies such as 
the Commission. Without this 
support, he said, photovoltaic 
cell and module production will 
fall well below the levels pub- 
lished in the study. ' 

So far, governments, public 
agencies and private companies 
world-wide have spent about 
$lbn on photovoltaic research, 
development and demonstration. 
Mr Starr calculates. This level 
of investment, he said, must he 
continued and, if possible, 
increased substantially to allow 
researchers, manufacturers and 
companies to imporve the tech- 
nologies involed, reduce costs 
and find markets for their 
products. 

Some public bodies have 
already allocated large amounts 
of money to the sector. The 
Commission, for example, has 


allocated about $30m on photo- 
voltaics and Is considering a 
major increase in its next three- 
year budget. 

Italy has also recognised the 
immense potential of renewable 
energies in general mid photo- 
voltaics in particular. It has 
granted its newly-created altern- 
ative enexgy agency. Ente 
Nazionale Energie Alternative 
(Enealin) a budget of L3bn for 
renewable energy in the 1982 to 
1984 period, 20 per cent of 
which will fund photovoltalcs 
work, 

Italy said Mr Starr was a 
prime candidate for a thriving 
photovoltalcs industry. Not only 
did it have public bodies wil- 
ling to sink large amounts of 
capital into photovoltaics, but 
it also had a sunny climate and 
about 70,000 houses in remote 
areas not connected to 
electricity grids. Electricity, 
presently supplied in these 
areas by small diesel genera- 
tors, costs up to 50 cents a 
kilowatt hour — more than the 
cost of electricity from 
some present-day photovoltaic 
generators. 

Multi-£acet 

Photovoltaic system costs are 
gradually declining and as long 
as financial support levels are 
maintained, . Mr Starr saw no 
reason why costs could not be 
reduced to about $5 per peak 
Watt by 1990 and further to 
between $1.6 and $3.5 per peak 
Watt by. the end of the century. 

At these system prices, the 
study arrives at the conclusion 
that by 1995 about 100,000 
photovoltaic units in the 50 
Watt capacity range for small 
scale consumer uses will be 
installed annually - through 
Europe. Similar-sized systems 
for navigational aids, telecom- 
munications and cathodic pro- 
tection wiH reach an annual 
installation rate of 50,000 units. 
Installations in this small-scale, 
stand-alone system sector will 


be in the order of 12 megawatts 
a year by 1995. 

In the larger standalone 
system sector, with systems 
averaging about 5 kilowatts 
substituting for small diesel 
sets, by 1990 about 4,000 units 
will be installed each year ris- 
ing to S.OOO by 1995. The 1995 
annual installation rate, there- 
fore, will be in the order of 
40 megawatts. 

In both these sectors, how- 
ever, market penetration will 
peak at these levels and annual 
installation rates will level oS, 
Mr Starr believes. 

This will not be the case with 
large-scale grid-connected and 
industrial and central power 
station photovoltaic systems. 
Mr Starr thinks that only from 
1995 onwards will photovoltaics 
begin to penetrate these sectors 
and that by the year 2000 grid- 
connected residential systems 
up to 25 kilowatts output will 
be being installed at the rate 
of 800 megawatts a year. This 
will rise to 2,000 megawatts a 
year by 2025. 

In the industrial sector where 
systems averaging 100 kilo- 
watts each will be installed, Mr 
Starr calculates that 1,000 Mw 
of photovoltaics will have been 
installed by the turn of the cen- 
tury.. 

Central power stations will 
need substantially larger photo- 
voltaic capacities in the 200 Mw 
range and calculations show that 
by 2025 about 50,000 Mw of 
photovoltaics will have been 
installed for central power gene- 
ration. The bulk of this instal- 
lation wHl take place from 2000 
onwards. 

Taking a base installation 
rate of one megawatt expected 
next year,, these levels of instal- 
lation represent an annual 
growth rate of about 50 per cent 
resulting in a 1.000 megawatt a i 
year intailation rate by the end 
of the century. If the rate i 
continues unchecked into the ! 
first quarter of the 21st centry, 
Europe will have about 200,000 I 



UPS or downs 


V.r*". rrj -'iT-t ic's. 
LPSI-.-..; V-ruft Din . r -w- 
, . • .will keep yoo cornpiiting. 


IB1115S 



This is Solar One the McDonnell Douglas station in the Mojave desert More than 1800 heliostats refleet the son’s rays to the 
central receiver. The heat converts water to superheated steam which drives a turbogenerator able to generate up to 10 mega- 
watts of electricity. The company believes that experience gained with this plant may lead to a wide variety of solar plants in 

the U.S. 


megawatts of photovoltaics 
installed by the year 2025 
generating 10 per cent of the 
European community’s elec- 
tricity. 

In a world context, since the 
market for photovoltaics 
throughout the rest of the world 
is several times larger than the 
European market, Mr Starr’s 
study predicts annual world 
sales . of photovoltaics at $5bn 
to $10bn by the year 2000. 

In an effort to ensure that the 


European photovoltaics industry 
is ready to cope with this ex- 
pected surge in demand, the 
EEC Commission started a pro- 
gramme last year to demonstrate 
the large-scale use of photo- 
voltaic systems. Originally, it 
planned to part-fund the con- 
struction of 19 photovoltaic 
generators with a total capacity 
of 1.3 Mw with at least one 
generator in each of the 10 
member states. 

Political, technical and finan- 


ciai problems have forced the 
Commission to cut back on the 
programme and the latest 
alterations to the programme 
mean that now 17 generators 
will be built in nine of the ten 
EEC countries. Denmark is the 
only country not included in the 
programme. First of the 17 is 
expected on line on Crete next 
month and the remaining pro- 
jects will be completed by June 
next year. 

In spite of early difficulties. 


the Commission Is confident 
that the generators will be fore- 
runners of hundreds of 100 kw- 
plus sized generators likely to 
spring up all over Europe once 
the early models have proved 
themselves. 

Photovoltaic Pmi'er for 
Europe — will be published for 
the Commission later this year 
by D. Reidel Publishing. PO Box 
17, 3300 AA Dordrecht. Nether- 
lands. and 190, Old Derby 
Street. Hicghan, MA 02043, U.S. 


New piston can reduce friction losses by up to 14% 


AE GROUP of Rugby has in- 
troduced the AEoonoguide 
piston, a new design which, it 
is claimed, reduces piston/ 
cylinder friction by irp to 14 
per cent 

The development is impor- 
tant because the piston assem- 
bly accounts for about 30 per 
cent of all the frictional losses 


in a petrol or diesel engine. 

In the new design the normal 
full contact area of the skirt 
profile on the thrust and non- 
thrust faces is replaced with 
small individual contact areas 
or pads. 

These pads, which are 0.025 
ram proud of the skirt, are pro- 
duced by machining the piston 


on equipment designed and de- 
veloped by AE and unique to 
the company. 

The effect of the pads is to 
reduce the total contact area 
of the piston skirt by a least 
75 per cent while ensuring that 
both contact area and stiffness 
remain constant over a wide 
range of loads and tempera- 


tures. The pads have shallow 
angle ramps round them which 
improve lubrication and reduce 
any tendency to scuff. 

Reduction of friction by 14 
per cent has resulted in a drop 
in fuel consumption of four 
per cent and an increase in 
power output by five per cent. 

GEOFFREY CHARLISH 


Ford’s 

integrated 

package 

AN INTEGRATED solar energy 
package suitable for email 
communities but which can be ‘ 
connected to the electrical grid 
has been developed by Ford 
Aerospace and Communi- 
cations, under contract to 
NASA/JPL 

Based upon a 36 ft diameter 
parabolic dish reflector with 
a heat-to-electrical energy 
converter mounted at the focus, 
the unit has been successfully 1 
tested at up to 20 kW output. 

The tests, carried out at J 
Edwards Airforce Base in the 
Mojave Desert, incorporated 
an automatic computer-based 
plant control system and • 
associated power conditioning 
equipment to permit operation 
on an electric utility grid. 

Consumer use 

The concentrated heat at the , 
focus of the dish drives a 
Rankin® cyelp engine-generator 
the output of which is then 1 
converted into normal “mains" 
voltage and current. The 
present mirror is multi-faceted 
but future testing will employ 
a more ■ cost-effective mass- 
producible concentrator. ; 

A small community might j 
use a number of the modules, s 
electrically connected to 
produce virtually any desired 
power leveL 

According to Ford, the mas 
produce plant “ can provide 
electricity at lower cost than 
new fossil-fuelled plants over 
the next 10 years and beyond." 




Nixdorf goes for UK technology 


BY ALAN CANE 

NIXDORF, viewed by many as 
the most successful indigenous 
computer manufacturer in Wes- 
tern Europe, is to base its office 
automation strategy on UK tech- 
nology. 

It is believed to have can- 
celled most of its in-house elec- 
tronic office developments in 
favour of systems built on Office 
Technology’s Information Man- 
agement Processor. 

Office Technology (OTL) is 
part of the Information Tech- 
nology (1TL) group which 
includes Computer Technology 
and Networking Technology. 

OTL has concluded a formal 
agreement with Nixdorf which 
gives the West German company 
access to OTC’s technology. 

Under the agreement. Nixdorf 
will take delivery of IMP 
systems from OTL and will be 
developing its own products 
based on the IMP concept. 


OTL will get royalties on the 
worldwide sales by Nixdorf of 
IMP based, products— it will 
also have some access to Nix- 
dorf technology. - 

According to the consultancy 
IDC Europa, Nixdorf is the third 
largest supplier of small busi- 
ness systems in Western Europe 
behind IBM and Olivetti; IDC 
believes its success is due to its 
policy of attacking specific mar- 
ket sectors. 

Mr R. J. “ Spud ” Taylor, OTL 
managing director, said tins 
week that Nixdorf was without 
doubt tiie best hi$i technology 
partner he could have hoped 
for. “When we set up OTL I 
shortlisted three companies I 
would have liked for a partner. 
Nixdorf was top of that list." 

The OTL system is advanced 
in two ways. It integrates voice 
in a novel manner — executives 
can annotate documents with 


spoken comments — and a great 
deal of attention was paid to 
the ergonomics of the machine. 

Mr Bob Remington, the only 
American member of the OTL 
team was an industrial psycholo- 
gist with IBM at Hursley Park. 

In a market which is becom- 
ing increasingly competitive 
and where technology counts 
less than marketing, the OTL 
system has won general acclaim. 
Some 20 systems have already 
been shipped to customers 
such as British Rail and BL 
Systems. 

Hie company is just beginning 
to make use of the UK software 
industry to write the programs 
which will be needed to support 
the system as it expands. 

A tender for a document 
handling package. OTL’s first j 
outside software contract will 
be awarded this week. OTL is 
on 0962 65353. 


4 Comad aid for fighter pilots 


IMAGINE there was a black 
box in your car which could 
tell you the way to your 
destination regardless of the 
weather conditions. 

Such a system does exist but 
is used by fighter pilots and 
its design won the Scottish 
group of Ferranti its Queen’s 
award. 

The system is called Co mad 
which stands for Combined 
Electronic Map and Display. 
On a tiny four Inch television 
screen on in the pilot’s 
cockpit, is presented a map of 
the aircraft’s route. 

Individual maps are stored 


on 35mm film strips which 
can either give general or very 
. elose details. 

Hie clever part of the 
system is that it is linked 
into the navigational system 
so that the pilot can see his 
position exactly on the screen 
and how it deviates from his 
charted course. 


Emergencies 


It ean also be connected to 
other sensors such as the 
radar system which is part of 
the weapon aiming system. 
The pilot can also put infor- 
mation into the compntter 


\ ^®gJi^ ll>,,,ll, ^Seminars and courses 

m all levels of management — 

INDUSTRIAL ROB0TS& PROGRAMMABLE AUTOMATION 
S June 1982 — One-day ssnrihar at PERA fey Ptof. W.B. Heguibotham. 
for production, tech® cal and dewlopmottiSfastiusand manages n 
manufacturing industries. 

INTRODUCTION to robottechnology 

7/8 September & 30 November/1 DBcgnber1382-TwB^Iaycosna^ 


USING INDUSTRIAL PROGRAMMABLE CONTROLLERS 
3 June (London) & IS Septtmbet 1382 

appreciation co ursg 00 systems and equipment. forita^daraopmEflt 


For lull Information pfease eontactlfie Booking Bureau. 
PBVLHMNN& ftoductfanE*^ 

MELTON MOWBRAY LEICESTERSHIRE LE13 OPB 

Tel. (0864) 64133 Ext 329 or m 


system such as the location of 
enemy aircraft. 

In emergencies, such as a 
fire, the pilot can press a 
button and the drill procedure 
replaces the map on the 
screen. It can even proride 
details of aircraft landing 
strips to help the pilot cope 
with unfamiliar airports. 

Comad is already used in 
the U_S. Airforce’s FIS 
fighters which amounts to 
several hundred systems and 
was recently selected for the 
Indian Airforces’ Jaguars. At 
the moment Britain’s Jaguars 
do not use the system. 

ELAINE WILLIAMS 




Charities Aid 
Foundation 
for effective 
charitable gfoiBg 

For individuals and companies 
a GAP discretionary covenant 
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If you’re looking for new areas of ex- 
pansion, it’s well worth considering the 
Middle East 

Saudi Arabia alone is currently spend- 
ing 235 billion dollars on its development 
plan. 

While the total development budget of 
the Arab States exceeds 600 billion dollars. 
Making it the most significant area in the 
world for capital projects. And one that’s 
likely to remain so until the end of the 
century. 

Ifyou’d like to explore the possibilities 
here for your company, no one 
isbetfcerplacedtoadviseyoi^^ 
than A1 Saudi Banque. , Jk 


We’ve built up an unrivalled chain of 
contacts in the Middle East. Largely 
through local businessmen who originally 
helped found the bank. 

As well as advisingyou on your choice 


We can assist you with foreign ex- 
change, trade finance, letters of credit and 
syndicated loans. 

In short, as the Arab States expand, we 
can help your business to do the same. If 


services call Mamoun 
Darkazally or Mike 
Reddy at (01) 236-6533. 


Al Saudi Banque 


LICENSED DEPOSIT TAKER 

City: 52-60CaniK}nStreeLLcEdmECiN bAN-Tbl: 01-236 6533- , Iefex: 8813438 ASB G.WestEnd 31 Berkeley Square^Laodon^^ 8942.Tekx: 23875 ASBW& 






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10 


DEUELOPmEll 

OPPORTIf 


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RESIDENTIAL 

DEVELOPMENT 

■1 2 acre wharf side 

Manna ste near Dty Centre. 

■ 35flatsand maisonettes. 


HOTEL 

DEVELOPMENT 

■Pnme City Centre Manna 
site - Immediately available. 

. 100-150 bed hotel plus 
related development 

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:"A 

flNOUSTRIAL H 


rCOMMERCIAL 


DEVELOPMENT 


DEVELOPMENT 

. \ 

.Serviced sites for Industrials 


■ Enjoys Capital Allowances/ 

* : '.7 

Estate developnient- 


■ IDyear rates holiday yjJ? 

i:v ; 

. irrvnediatety 
av»iaoie 


. Sites lnmediatelMK&3 
available 




fA- 


CENTRAL AREA 
DEVELOPMENT 


■ Street Snhoncnd 
other pme sites 


Please contact 
The City Estate Agent 
City ol Swansea 
Guildhall Swansea 
SA14PE 

Telephone 0792 50821 






TOTAL ELECTRICAL AND 
MECHANICAL SERVICES 


ELECTRIC MOTOR & MAGNET REWIND 
AND REPAIR SPECIALISTS 
24 HOUR SERVICE 

Telephone : 0792-50878 



Riverside Wharf, 

Prince of Wales Dock, 
Swansea, Wales SA1 8RL 


■ Trade Mark General Electric Company USA 
not connected with the English company 
oi a similar name 


' Financial Times ^Moiiday^Ia5fjjg.J^S2 

FINANCIAL TIMES REGIONAL REPORT 



The past two years have been a period of pain and sacrifice in Swansea. Numerous 
companies have contracted, and the jobless figure has doubled to reach 33,000— 
more than 16 per cent. Now there are hopes that the drastic pruning may be paying off. 


Swansea 
Enterprise 
Z 


Steel contract boosts revival hopes 


LAST MONTH the British Steel 
Corporation's Port TaJfoot steel- 
works won an export order for 
the delivery of "5.000 tonnes, of 
steel ingots to Kaiser SteeH in 
California. Not only was the 
contract secured against inters 
national competition, including 
Japanese steel producers, but, 
more impressive still, it was 
won at a price which BSC insist 
will still leave the corporation 
with some profit. 

This is the kind of news 
which is important not only for 
the Port Talbot works but for 
the whole Swansea Bay area. 
Over the past two and a half 
years, industry and commerce 
in the string of urban com- 
munities which stretch in an 
almost continuous arc from 
Port Talbot in the east to 
Llanelli in the west, have been 
fightina for survival. 

Port Talbot steelworks has 
shed more than 7.000 of its 
12.000-plus workforce • under 
BSC's survival plans- The 
Kaiser contract provides 
tangible erjdenre that- the rain 
and sacrifices which have h**en 
called for over this period rna v 
at last he paying off. port 
Talbot is now sufficiently 
risrhtlv manned to take on 
,Tapane'5° steel producers an 
th^'r Parifir doorstep. 

Vp^- chnrMv too. Port Talbot's 
cinom inv»>5t-mpnt in continuous 
cash' ns nf steel will come on 
stream, on? of a number of in- 
vp*tn»«*nN maioTained despite 
rho recession. This should rive 
th«* works an added nnliry edr*. 

Tt will else benefit the still 
sizeable number nf enterprises 
and jobs In the Swansea Bay 
area which continue to be 
dependent upon local steel 
production. 

Tin plate is one. BSCs 
Velindre works, near Swansea, 
came very near to closure as 
the corporation struggled to 
reduce its .losses and cope with 



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— — • — — » —• ; - - • * 








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1 ifflcawrff ** ~ 


Port Talbot steelworks — now sufficiently tightly manned to 
take on the Japanese In the American market 


poor tin plate demand. But 
then the plant gained a reprieve. 
A supply of competitively priced 
top quality sheet steel will help 
secure the future of Velindre 
and that of its sister plant 
Trostere, near Llanelli and 
Metal Box, at Neath. 

Management and unions alike 
are hoping the same story will 
be repeated in many other com- 
panies in the area which have 
weathered the recession only by 
introducing drastic redund- 
ancies and other cost-cutting 
measures. British Aluminium 
was forced to close its Rheola 
Mill. But Alcoa, for example, 
•which at one stage was threaten- 
ing to cut its aluminium mill is 
now reported with slimline 
manning to be holding its order 
book. 

International Nicked decided 
to mothball capacity at its 
Clydach refinery only a few 
weeks ago and -introduce more 
redundancies because of poor 
European demand for nickel 
products. And even IMI 
Titanium, a company not norm- 


ally affected by recession, felt 
the need to trim its labour force. 
BP, which has two major petro- 
chemical complexes at Uan- 
darcy and Baglan Bay, has also 
been gradually reducing its 
manning. 

At the same time major 
investment has been taking 
place in some key companies. 
Ford’s Swansea factory, which 
makes transmissions and gear- 
boxes for a number of the 
group’s vehicles, shed some 400 
workers last year but is now 
investing £65m to improve the 
plant’s operating efficiency. 


Expansion 


• /"•TV 

/T-’-Vr* 




H3AO<TWa 


/ 

6 


IF 1 ' 




1 




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i 





L 


Postage 
will be paid 
by licensee 


Do not alfnr Postage Stamps if posted in 
Gl Britain, Channel Islands, H Ireland 
or me Isle of. Man 


Business reply service 

Licence no; 5S16Q 




Swansea 
Bay City 
OpportiJ 


Opportunities 


Swansea Centre for Trade & Industry, 
Guildhall, - 
Swansea, SA1 1ZZ 


Tel: (0792) 50821 



V 

\ 

\ 

□ 


□ 


□ 


□ 

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?: 

□ 

m 

33 

m 

□ 


□ 


□ 


Please send me details of the following' 


cncu 


| j Assisted Also. grcn« available 


Business Directory, details c! ever 
LOCO tinns county-wide 5s 


□ Industrial I mp rovement Aiea& giants 

I I “Lower Swansea Valley — Legacy 
1 — and Future 1 Si.55 


unemployed 


j j Marina: new v.-hax&de development 
1 — eppsdurubes avmlabie 


local 


□ New Enterprise Grant Scheme: max 

£OCSO 


City Centre, commercial 
development sues available 


| [ Overdraft Guarantee faculties 


available 


planned 

| | Small units avafiabls. 500sq fl + 

I I Swansea Centre lor Trade fic industry. 

1 — 1 range e! services 


□ Swansea City Development 

Company, new support available 


y 

Si 


J 


[ I Enterprise Zone. Lscal/plarjur.g 
1 — 1 advantages 


I j “Swansea Trade & Industry", bi- 

1 — nr.anJhiy newspaper bee by post 


aiod 


I I Enterprise Zone, Development sites 
1 — 1 available 


f I Tourism Development OppoxtunitteSi 
— ‘ • Wes saasgan 


□ Enterprise Zone; baJdir.gs available r~j Welsh Development Agency. fecllitiBS 

*— 1 x. Swansea 


| ] European Coal 6c Steel Co mmuni ty. 

' — ’ special lew interest imar.ee 


j | Hotel rites available: ety 


I | “West GSamonyan ppportuntiies“> 
L — 1 csuntyw.de data 


cenrie/toresr.ore 


Signed 


PoBition 



Organisation 


Address 


Tel. No. 



Please stiffen frith a sheet of light card, eul to approximately 9cm x Dteaj, before posting. 


: - J 


The U.S.-owned 3M Group has 
embarked on a major expan- 
sion and has invested film to 
meet the booming demand for 
video cassettes from its 
Gorseinon factory — currently 
the only video tape manufactur- 
ing fatality in the UK. 

Cam Gears at Resolven is also 
investing to meet the require- 
ments of a major new long- 
term contract for steering com- 
ponents, again won against 
Japanese competition. 

For all these hopeful signs 
it is also clear, and gradually 
being taken on board by local 
politicians and industrial 
leaders, tbat traditional major 
industrial employers in the 
Swansea Bay region are not 
going to soak up current levels 
of unemployment 

In two years, the absolute 
number and percentage of job- 
less has more than doubled to 
over 33.000 or just over 16 per 
cent giving it virtually the 
same unemployment level in 
Wales as a whole and some 4 
per cent above the British aver- 
age. 

That said, much is being done 
to tackle the problem. 

The Welsh Development 
Agency has been particularly 
active, with a crash programme 
of Industrial estate develop- 
ment and advance factory build- 
ing at sites right around 
Swansea Bay. 


Well over 500,000 sq ft of 
space is either completed, 
under construction or in the 
pipeline. In addition, there is 
another 2m sq ft of vacant 
factory space in private hands 
waiting new tenants. The figure 
includes the exceptionally 
large 600,000 sq ft premises of 
British Aluminium at Rheola. 

BSC (Industry), building cm 
the success of its job creation 
initiatives elsewhere, last 
month announced the opening 
of a new workshops complex 
for fledgling businesses in 
Port Talbot The workshops will 
cost £500,000 and provide 
sufficient space for 48 small 
businesses and up to 200 new 
jobs. 

Swansea City Council in its 
turn, lias seized the opportunity 
presented by designation of the 
lower Swansea valley as an 
Enterprise Zone with both 
hands. It received the Govern- 
ment go-ahead last June and 
has been attracting companies 
into the zone art an average rate 
of two a week. 

The council has also backed a 
number of imaginative schemes 
for - encouraging new local 
businesses promoted by the 
city’s own centre for trade and 
industry. 

The city itself has a lot to 
gain from strengthening its 
role as the regional capital of 
south west Wales. Swansea's 
shopping facilities have been 
greatly improved over the past 
three years by the Quadrant 
Retail Centre and (his month 
has seen the completion of the 
140,000 sq ft St David’s Square 
shopping precinct This com- 
plements and adds nearly half 
as much space again to the 
Quadrant 

There are also a number of 
other local employment initia- 
tives, such as a Thompson 
Organisation project being 
carried out in conjunction with 
Neath District Council, and a 
West Glamorgan County 
Council-funded special unit 
to encourage workers’ co- 
operatives. . 

Clearly, given a strong revival 
in national and international 
capital investment, the Swansea 
Bay region is better prepared 
than it has been to compete 
for a slice of the action. 

It has the sites, the premises, 
the skilled labour force and 
the communications. The M4 
motorway link is now finally 
complete in all sections, bring- 
ing London and Heathrow air- 
port within three hours drive. 

At present, local initiatives 
are having to suffice. There is 
currently a good flow of out- 
side inquiries from potential 
investors, but a belter economic 
climate is required, it seems, to 
turn them into firm commit- 
ments. 

Robin Reeves 



ins 


i) 

it 


lie 


.• k’fr-> 


Council sets the pace 
for enterprise zones 


Microelectronics show 
reveals surprise potential 


THE FIRST ever Swansea Bay 
microtechnology show, was 
mounted in January this year. 
The response, in terms of both 
the number of exhibitors and 
visitors, surprised even the most 
optimistic of the show’s 
organisers. It vividly high- 
lighted the fact that a small 
but lively microelectronics sec- 
tor, has begun to spring up ip 
the Swansea Bay area. 

Until recently micro- 
electronics in this part of the 
world meant only two things. 

One was University College. 
Swansea, which, in 1973 estab- 
lished the first' microprocessor 
teaching laboratory in the 
country. Two years ago UCS's 
electrical engineering depart- 
ment became an' officially desig- 
nated microprocessor centre 
offering consultancy and design 
services to industry under a 
Government-backed scheme. 

The other was Sillctmix. a 
California-based semi-conductor 
manufacturer, which established 
its European production Sub- 
sidiary in Swansea 12 years ago, 
and has been growing there 
ever since. 


SJliconix'j Swansea plant 
makes field effect transistors, 
analogue, electronic switches 
and multiplexers and other inte- 
grated circuits for aerospace 
and military and civil telecom- 
munications Industries. 

The Welsh plant accounts 
now for nearly half the group's 
world sales. Given an Improved 
economic climate Siliconlx is 
planning to expand into silicon 
wafer manufacture in the Swan- 
sea Bay area. 

These days there are, how- 
ever. other things happening. 
Another hardware company. 


Cirtech, has a unit on the 
Swansea Industrial Estate which 
specialises in contract assembly 
and design electronic equip- 
ment. 

There is also a growing band 
of local software companies 
with good Welsh names like 
Croeso Computer Services and 
Tawedata. These companies 
are making a reputation for 
themselves offering an advisory 
and installation service. 

Another Swansea-based soft- 
ware house, Redldte Software, 
is only two years old but is 
already making an international 
mark ’supplying high quality 
software packages for Digital’s 
range of microcomputers. 

Among a number of software 
packages for which Redkite is 
licensing International distribu- 
tion rights is one which expands 
the memory capacity of an ex- 
isting computer type by a factor 
of J6 without replacing existing 
equipment 

An even more recent arrival 
on the scone Is Business Micro 
Svstems which after looking at 
Bristol Oxford and Card’ff, de- 
cided to make Swansea its bas«* 
for serving the southern half 
of the UK- 

The company, whose head- 
quarters are In Harrogate, 
Yorkshire, specialises in the 
development of programmes for 
local authorities and Integrated 
business systems for small and 
medium size concerns. 

BMS claims to bo the first to 
have developed a system to 
monitor the performance of 
local authority direct labour 
departments. 


SWANSEA was the first local 
authority in the country, to 
clear the administrative hurdles 
required to get its Enterprise 
Zone into business. And it con- 
tinues to be a pacesetter for tbe 
Government’s experiment in 
freeing industry and commerce 
from many traditional planning 
and fiscal restraints. 

The Swansea Enterprise Park 
— as it has now been renamed 
— was activated by parliamen- 
tary order on June 11, last 
year. Since then, an average of 
two enterprises a week have 
established themselves within 
tiie 735 acre zone in the lower 
Swansea Valley. 

In its first nine months, up 
to March 31 this year, a total of 
33 companies had committed 
themselves to moving into the 
zone. Of these. 15 made the 
decision in the first quarter of 
this year, a period during which 
there was also a steady increase 
in the number of serious in- 
quiries to a peak of 48 in 
March. 

Swansea is fortunate.- Its 
enterprise zone is not tucked 
away in an area with difficult 
access, as is the case in some 
other parts of the country. Nor 
has the area in which if lies 
failed to secure development or 
redevelopment, via traditional 
incentives. Its situation in the 
lower Swansea Valley is at the 
geographical heart of the Swan- 
sea Bay conurbation. 

The area’s previous neglect 
stems from its history as the 
one-time centre of Britain's 
copper, lead and zinc smelt- 
ing industries, which turned the 
valley into one of Europe’s 
worst environmental M a despots. 

Designation us on enterprise 
zone coincided with the first 
fruits of an ambitious land re- 
clamation proTramrae launched 
in the early 1970s. This has re- 
leased nmole land for industrial 
and commercial development in 
a location with excellent cora- 
munnxitinns with Ibe whole of 
south and west Wales. 

It has also given the zone a 
range or new factory units ready 
for immediate occupation. These 
had been planned by both 
Swansea City Council and 
private developers and were 
under construction before the 
enterprise experiment was first 
announced. 

For this reason, complaints 
from sections of Swansea's 


business community that the 
zone is already distorting the 
local industrial and commercial 
property markets are difficult to 
prove. 

Certainly, well over half cf 
the 33 businesses were pre- 
viously located in other ports of 
the Swansea Bay area; But Mr 
Roger Warren Evans. Swansea’s 
director for trade and industry, 
says no company has moved 
simply to cash in on the zone's 
10-year rates moratorium and 
other fiscal advantages. AH have 
been prompted by. other con- 
siderations, he says — usually the 
need to expand into moire soil- 
able premises. 



Location 




Sr..*::. 





The zone’s geographical posi- 
tion at the centre of the 
Swansea Bay region may well be 
as important an influence in 
tempting away commercial and 
industrial development from 
other potential local sites as its 
enterprise zone advantages. 

The position was bound to 
attract good interest from the 
wholesale, retail and warehous- ai-ga.-,.., 
ing sectors. These account for DUSilttSis 
nearly 40 per cent of the enter- „ ^ 

prise and half tbe total floor 
space allocated so far. 

One of the few restrictions is 
that retail developments are 
subject to a ceiling of 45,000 
sq ft But this has not dis- 
couraged Tesco from purchas- 
ing a large site within the zone. 

It is also leading to some 
interesting joint wholesale- 
retail developments, a mix 
which local councils have 
generally frowned upon ever 
since planning laws were intro- 
duced. 

Small-scale manufacturing 
businesses comprise nearly 40 
per cent of the companies in the 
zone so fax, but only just over 
20 per cent of the floor space. 

Up to March 31, an estimated 
total of 148 jobs had been estab- 
lished in the zone. Of these, 39 
were newly created. 

• These however are early 
days. Only 13 of the 735 acres 
have so far been developed^ Yet 
it is already clear that in 
Swansea at least the enterprise 
zone experiment is going well 
and in another year could be 
yielding even mare interesting 
results. 

Robin Reeves 


■rf ■- * 



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Fi^cfai Times Monday May 17 1982 


SWANSEA BAY D 



11 


Tourist industry hopes to emulate success achieved by the region’s sports teams 




joins 

the 

elite 


By Gareth Jones 


FOR THE past eight months 
British football fans have had 
to become used to a new name 
among the Liverpool and 
Manchester Uni teds at the head 
of the league championship 
table: Swansea City. 

The club's success highlights 
a renaissance so complete that 
there have been suggestions 
that the swan which adorns the 
team's jerseys should be 
replaced by a phoenix 

Five years ago the club was 
near bankruptcy. It had been 
struggling in the fourth divi- 
sion for four seasons and the 
chances of it achieving first 
division status Sot the first time 
ever were not even considered. 

The recovery begag when 
dub chairman Malcolm Struel 
enlisted the support of the city 
council to fend off the club's 
immediate creditors. But, in a 
football sense, it started In 
February 1978. when Struel 
entrusted his side to a man 
with no managerial experience 
whatsoever, Welsh inter- 
national striker John Toshack. 



Recession forces 
closer look at 
tourism potential 


Swansea City player/manager John Toshack (third from right): labelled “manager of the 

century” by the late Bill Sbankly 


Toshacfc’s arrival inspired an 
almost Messianic fervour. The 
crowd for his first match as 
player-manager was 15.000— 
topping the average attendance 
by 9,000 

That spring Swansea were 
promoted to division three and 
the next year to division two. 
After a season to pause for 
breath, the Swans soared on, 
victory at Preston a year ago 
taking them into the first divi- 
sion for the first time in their 
80-year history. 

It was an achievement which 
prompted the late Bill Shonkly, 
former boss at Liverpool, to 
describe Toshack as “ the 
manager of the century.” 

-Toshack’s Inspirational and 
tactical skills, backed by a far- 
sighted board of directors, 
meant that a city which had 
always exported talented foot- 
ballers — the brothers Charles 
and AUchorch, Cliff Jones, Jack 
Kelsey et al — can now both 
hang on to its local products 
and attract others of the 
highest quality. 


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BUSINESS RELOCATION 
SERVICES 

PM International provides a total relocation service from 
selection of premises right through t» commissioning of plant in 
the new factory. 

If your Company is considering relocating to Swansea, con tact: 
Eric Damagnez on Stonehouse (0453B2) 3535 or write to 
PM INTERNATIONAL 

“ Tregenna," Marsh Lane, Leonard Stanley, Stonehouse, 
Glos. GL10 3NJ 

for full details including Case Studies 


The club provided nine 
members of this year’s Welsh 
team and the current staff also 
includes internationals from 
Yugoslavia, England and Scot- 
land. Not surprisingly, attend- 
ances now average more than 
20,000. 

Progress on the field has' ^'9 
been matched by that on the 
sidelines. Last year saw the 
opening of an impressive new 
grandstand, the first stage in a 
£1.8m scheme intended to turn 
the homely Vetch Field into a 
top-class stadium. 

In the programme marking 
the stand’s official opening, 

West Glamorgan County Coun- 
cil leader John Allison 
described Swansea City as ” the 
standard-bearer for south-west 
Wales” and spoke of “the 
status and commercial advant- 
ages that the club has conferred 
on Swansea over tbe years.” 

The fairy-tale rise of the 
city’s soccer club should not 
blind us to the rest of Swan- 
sea's rich sporting tapestry. 

Just half a mile from the Vetch 
Field is St Helen's, with enough 
legends of its own. 

St Helens was the venue for 
the first international rugby 
match in Wales, against Eng- 
land in December 1882, and 
the All Blacks and Springboks 
are among those who played 
there before international 
g?mes were restricted to 


Cardiff in the mid-1950s. 

As the home of Swansea 
RFC, one of the top half-dozen 
clubs in Britain, St Helen's still 
plays host to all the major 
touring teams and provides its 
share of rugby folk lore. It 
was tbere, for example, that 
Gowerton School pupils, 
Willie Davies and Haydn 
Tanner, inspired the dub to 
victory over New Zealand, in 
1935. 

Cricketing history has also 
been made at St Helen's. Gary 
Sobers hit Malcolm Nash for 
six sixes in one over there and 
Clive Lloyd hit 201 not out in 
120 minutes, the fastest double- 
century in first-class cricket. 

Swansea has a fine record in 
indoor sport, now focused 
about the well-appointed 
modern leisure centre managed 
by Commonwealth Games gold 
medallist Berwyn Price. 

The city boasts two of 
Britain's current boxing cham- 
pions, European and British 
titleholders at judo and karaie 
and a string of top-flight 
gymnasts, swimmers, bowlers 
and tennis players. 

The future could see similar 
success in athletics, with the 
development of a 20,000- 


THE RECESSION has 
encouraged a far closer look at 
the opportunities for expanding 
tourism in the Swansea Bay 
region. 

There is no doubt that the 
tourist industry is capable of 
making a higher contribution 
towards employment Some 
existing amenities and facilities 
need better marketing. Others 
require investment of both cash 
and expertise to fulfil then- 
potential. 

One unique part .of the 
Swansea Bay region — the' Gower 
Penihsula—aiready enjoys a 
national and international repu- 
tation in the world of tourism. 
It was Britain's first officially- 
designated “ area of outstand- 
ing natural beauty" and its 
famous coves and sandy beaches 
can attract as many as 80,000 
people a day. 

The need is to spread the 
available traffic more evenly 
into the surrounding areas by 
developing and enhancing 
attractions in Swansea's hinter- 
land .and by extending the sea- 
son outside the traditional July- 
August holiday period. 


Target 


West Glamorgan County 
Council, which is responsible 
for most of the region, has set 
itself a target of doubling the 
number of tourists. It has made 
a special effort to identify parti- 
cular sites in the region which 
offer profitable investment 
potential. 

Among well-known- local 
attractions built up in the past 
decade are the Dan yr Ogof 
show caves in the Upper 
Swansea Valley. iihe-'Margam 


The maritime project has 
skilfully exploited the tourist 
leisure potential offered by the 
city’s disused south dock, which 
has been turned into a boating 
marina, and the associated his- 
toric districts, once Swansea's 
commercial area. A major hotel 
will be constructed alongside 
the marina. 

Swansea Council is also press- 
ing ahead with an ambitious 
£5m redevelopment of the city's 
Grand Theatre. When completed 
- the theatre will be easily 
capable of handling London and 
Welsh National Opera produc- 
tions. 

There is scope for much 
more. West Glamorgan planners 
have pinpointed a range of sites 
suitable for hotels, golf courses, 
holiday .villages, a motorway 
service centre and (in the 
Enterprise Zone), a motel, 
specialist museums, and, last 
but not least, a new tourist 
railway along tbe former route 
of the Rhondda and Swansea 
Bay Railway. 

According to West Glamorgan's 
researches, around 500,000 
tourists stay in the county each 
year, half of them coming from 
south east England and a 
further 20 per cent from the 
Midlands. But, given that same 
18m people live within four 
hours’ drive, there is stall room 
for further growth. 

' The area is particularly weH- 
placed to take advantage of the 
short-break holiday and/or the 
long spring or autumn weekend. 
It can combine the peace and 
simplicity of the countryside 
with the amenities and sophisti- 
cation of city life. 

According to the Wales 


and Afan Argoed country parks Tourist Board, Wales is already 


and Swansea' leisure centre. 
Plans are well advanced for a 


capacity stadium, already the .£6m theme park just outside 


site of the only all-weather 
track in west Wales. 

Swansea has every right to 
the title of Wales’s snorting 
capital. 


Swansea and the City Council 
itself is within sight of complet- 
ing a major scheme — redevelop- 
ment of the • “Maritime 
Quarter/’ 


level pegging with southern 
England as the most popular 
location for short holiday breaks 
and the Swansea Bay region is 
developing into one of the more 
go-ahead tourist areas in Wales. 

Robin Reeves 


Courts 

Developments 

(South Wales) Ltd. 


, Complete 
package with ir>-; 

-'ProvidingioceC 

meet ,.i ridivid ual 

Rentals' from as- little. bs"£^05; per,sg;. : 
ft. Negates -to :pgy-'for ; '9 years ," •; 

P r em i s^sj'a ya ii'a Ip'T.j i gk? Qj'cp 

o p pos ite-fesep'; CpaC;.; 

Dodge City;; ‘R4.U mf/lams fyler^wear. . • 

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No planning . needed' - 
.Retail. Cla^.d.: gp-.tci : i5,0ppi?q. ftted : 


v , C i UlUlH iaUtl v •_ C • 

j. 



For further details please contact: 

Stuart J. Williams, 

Chartered Valuation Surveyors and Estate Agents. 
1. Crass Buildings. Morriston. Swansea 

Telephone: (0792) 753*3/4 





Swansea ^ 

Trade and Industry 


Get your own copy FREE 




Please contact M. E Bums (DistnbuhanX 
Swansea Centre lor Trade & Industry. 
Singleton Street Swansea SA1 3QH 


COMPANY PROFILE: THYSSEN 


Llanelli’s warm welcome pays off 


LLANELLI IS not a town 
where most people would expect 
to find the UK headquarters of 
one of the big names in German 
industry. But Thyssen GB has 
been firmly settled in this 
famous west Wales community 
since 1954. 

In that year the company won 
a tender to sink a new mine 
to exploit the area’s rich 
anthracite coal reserves for tbe 
National Coal Board. The 20 
German engineers sent by the 
parent company received such 
■». warm welcome from tbe 
local council and 'ownspeayle 


yiT” -• ''i 


yr? r ' 



Tlie^ct is, the Welsh Development Agency is just as 

active throughout the Swansea area as it is in the heart of die 
Enterprise Zone. 

. As well as the factories weVe already built at Morriston, 
vrebave fhUy serviced units atKen% and Neath. And more, 
recently completed, at Fforestfach, Burry Port,Ponthenri and 
Briton Ferry. 

. WeVe also started work onl65,000 sq.ft ofiactoryspac^ 

at Bagfcm Mooi; right next to the M4. 

Since were one of the biggest and busiest developers of 
industrial property inEurope,itworit surpriseyoutoleamthat 
our building doesn’t stop at Swansea. 

We can provide factories throughout tibeNorth and 
South ofWales. 

We can arrange financial assistance too. 

And we’re always on haiid to advise on new product 
devetopmentiecrota 

management ' 

Soffyou’dliketoMouthowwecanhelpyauinakethe 

most of your business, call Tbd Cleaveley orDavidMoigan at 
our head office onTteforest (044 385) 2666. 


WFT w ramrenjPMHHTAGEKCY 


director until his retirement 
last year and still a main board 
member, determined that the 
headquarters would remain in 
Llanelli. The connection remains 
a close and happy one. 

The German parent is 
Thyssen Shacbtbau of Mulheim 
Ruhr, rather than Thyssen 
Steel, which is linked to Shacht- 
bau through a holding company. 

Thyssen GB’s first Welsh pit, 
Cynheidre, proved to be one 
of the most productive in the 
anthracite coalfield of west 
Wales. It was the start of a 
record of eehieveraent in the 
3r Industry. 

Thy^n was 


>• : became in 

-. hrr UK mirisg ventures, 
including a number of Cornish 
developments. It was also 
responsible for the Selby Moors 
potash mane sunk in the 1960s, 
which involved a shaft of 3,600 
ft — then the deepest in Britain. 

Shaft sinking remains very 
much Thyssen’s speciality. A 
measure of I he company’s con- 
tinued high standing in the field 
has been its retention as design 
consultants for both th.e Selby 
and Vale of Belvoir coal 
projects. 

Dust Control 

Within a few years of its 
arrival at Llanelli. Thyssen was 
encouraged to diversify, first of 
all into civil engineering and 
construction. 

In Wales it Is well known 
for public works projects such 
as sewerage schemes, roads, 
■water supply projects, and. in 
the Llanelli area, residential 
housing. It has joined one of 
the consortia bidding to build 
the channel tunnel. 

Arising from its mining 
activities, the company also 
established a number of manu- 
facturing units to supply its 
own requirements and those of 
the rest of the mining industry. 

In 1964. for example, the 
company started to manufacture 
PVC equipment for the control 
of dust during blasting. More 
recently it has been .manufac- 
turing glass fibre reinforced 
cement under licence from 
Pilkington Bros and expanding 
into permanent form work, 
bridge decking and sewer 
linings. 

Thyssen’s engineering work- 
shops at Llanelfi were started 
initially to construct arches and 
steel supports for its tunnelling 
operations. From this base they 
have extended into general 
structural steelwork and, in 
more recent years, to the manu- 
facture of complex tunnelling 
machines. 

Mr Eberhard Bornemann, 
Thyssen GB’s ne w managing 
director, arrived with the com- 
pany’s 1054 vanguard. He was 


scheduled to stay three months 
and ended up staying for his 
whole career. 

From the 'moment he took 
over the reins of tbe company 
he has been wrestling with the 
effects of the recession. Each of 
Thyssen 's diverse operations has' 
been affected and last year it 
was forced to lay off over 1,000 
of its near 3,000 employees. 

Even mining has not been 
exempt As a result of the NCB 
cutback in the' use of outside 
contractors, half of Thyssen’s 
traditional sub contract work in 
South Wales has been lost 

Mr Bornemann is quite clear 
It ov.Ti mmd that the first 
;■ r’ ■■ nl is to make 

■ •• 

The alternative is 

bn!:.‘-ptcy. 

He feels the worst is now over 
but stresses that the company 
is still only working at 80 per 
cent of its capacity. 

Thyssen has. to a large extent, 
been forced back on its mining 
expertise during the recession. 
A decade ago mining .and tun- 
nelling accounted for tittle more 
than one third of Thyssen's 
activities. Now it makes up 
more than two thirds. 

The company is seeking over- 
seas mining opportunities. It is 
involved in developing a £7m. 
potash rift mine in Thailand and 
constructing a link tunnel for 
a large hydro-electric scheme in 
Swaziland. 

Mr Bornemann is determined 
tbe company should approach 
the overseas market cautiously. 
“ We shall use these projects to 
prove our capacity to operate 
satisfactory at such distances,” 
he says. 

The company remains optimis- 
tic about the future domestic 
market. 

It feels Britain's shortage of 
decent housing and outdated 
sewerage system point to needs 
which Thyssen is ready and able 
to help satisfy. 

RJt. 



Wales has one of the highest per capita 
incomes from tourism in Europe. Its 
record over the past 10 yazi~ shows why 
today it is still one of the mosc favourable 
locations for investment. 

* Wales is ideally situated and For more information send for 

has all the assests required to our F REE, investment brochure 
take advantage of the predicted Sg^WALES THE TOURISM 

increase in national and CONNECTION’, 

international tourism. Particularly TouriSfH-3 growth 

in the demand for short breaks “MgP industry in Wales 

and second holidays. jvBtefl.idfgnf * 

*The Tourist industry in Wales 
has shown itself to be capable of 
meeting the changing market 
demands of the 80’s. 

*The Wales Tourist Board may 
be able to 1 provide potential 
investors with financial 
assistance, and will make, 
available a comprehensive 
development information service. 


TO DEVELOPMENT DIRECTOR, 

WALES TOURIST BOARD BRUNEL HOU5E 
2 FTTZALAN ROAD.CARDEFF CF2 1UY 


NAME. 


ADDRESS. 


I 

I 

I 

I 

fl 

I 

I 

B 

1 

I 

I 


Swansea 



all freight speed link 
London M4 Motorway 

wansea International Harbour 
BR 125 High Speed Train 
Swansea Airport 



1 735 acres of land served by excellent regional 
■and international communications 

Telephone 0792 50821 



Swansea Airport, Fail-wood, Swansea SA2 7JLT Telephone 0792 204063/4 







12 


Financial TimesMxraday May 17.1982 



THE MANAGEMENT PAGE 


EDITED BY CHRISTOPHER LORENZ 




ie»* 


Why wanderlust is waning 


Arnold Kransdorff and Elgin Schroeder compare the reluctance of 
employees in the U.S., UK and West Germany to be relocated 


A DECADE AGO, when a com- 
pany offered a key employee 
the opportunity of a transfer 
to a new location, he usually 
jumped at it. The move usually 
meant promotion and more 
money — and was a sure sign, of 
even better things to come. 

In those days it was also not 
that difficult to make a move. 
House prices were relatively 
Jew, mortgage interest rates 
were less than 9 per cent a year 
and buoyant demand for houses 
meant that " For Sale ” boards 
did not have to stay up for 
very long. 

Today the picture is very 
different House prices have 
rocketed, interest rates have 
wntii recently topped 15 per 
cent, and demand for houses has 
rareSy been flatter. In addition, 
changes in social attitudes and 
the fact that more wives are 
working has produced a notice- 
able reluctance on the part of 
employees to move — even if 
theiT companies demand it 

These shifts in economic 
conditions and social attitudes 
have meant significant changes 
in corporate relocation policies. 
In many cases companies must 
now offer substantial incentives 
to get their employees to move. 

Among these are usually re- 
imbursement for the costs of 
selling a house and buying 
another, sometimes including 
payment of the interest on 
bridging loans. Many companies 
also pay what they call a “ dis- 
turbance allowance ” to help 
employees buy new carpets and 
curtains, school uniforms for 
their children and meet such 
costs as installing cookers and 
TV aerials: this allowance often 
amounts to a flat 10-15 per cent 
of salary. 

Besides this some employers 
pay the costs of travel between 
old and new locations during a 
settling down period, as well 
as the cost of hotel accommoda- 
tion before moving into a new 
house. 

But such consideration is not 
widespread in the UK, where 
compensation packages for re- 
location employees are not par- 
ticularly generous, at least in 
comparison with the job mobi- 
lity-conscious U.S. 

In the UK, sophisticated re- 
location policies are generally 
the preserve of the larger com- 
panies. Some, like IB If, ICI and 
Unilever, have their own in- 
house departments to deal with 


employee relocation while 
others such as Watney Mann, 
Associated Dairies and Turner 
and Newafl use outside speci- 
alist consultancies. The two 
largest are PHH Homequity 
Relocation and Merrill Lynch 
Relocation Management 

When most UK companies 
transfer an employee, they re- 
strict themselves to paying 
removal costs and — grudgingly 
— offer bridging finance, leav- 
ing tiie individual to arrange 
the sale of his house. 

Not so in the U.&* where 
companies often go to the 
extent of providing reception 
committees to help relocated 
employees settle into their new 
environment Many UJS. com- 
panies also give special pay- 
ments to compensate for a move 
from a low cost bousing area to 
a high cost one, as wen as cost 
of living allowances. 

Nearly all major U.S. 
companies provide relocated 
employees with some form of 
assistance in disposing of their 
former living quarters. A 
majority — around 56 per cent — 
employ an outside relocation 
firm or bank which offers to buy 
the employee’s home and some 
— about 13 per cent — offer to 
purchase the -employee’s home 
themselves. 

Only a quarter of companies 
now have a policy where 
employees arrange for the sale 
of their own homes and are 
reimbursed for some or all of 
their expenses. 

These findings emerge from 
the latest study* of employee 
relocation policies among more 
than 600 major corporations in 
the U JS. The survey has been 
conducted by Merrill Lynch 
Relocation Management and is 
due to be published later this 
month. 

The study notes that the 
percentage of companies using 
a relocation firm or bank, or 
purchasing the transferred 
employee's home has increased 
significantly in recent years. 

‘ Among the compand 
surveyed — selected from 
Fortune’s top 1,000 industrial 
and 50 non-industrial companies 
— the average number of 
relocated employees increased 
slightly in 1981. which suggests 
a reversal in the trend over the 
past two years. 

Two industries reported a 
significant increase in transfers 
—the mining industry (up by 


58 per cent) and business 
machines (ahead by 27 per 
cent). 

According to the survey 
fewer transferred employees 
(57 per emit) are now home 
owners. The authors suggest 
that this is because younger 
employees are now finding 
home ownership too expensive. 

UjS- companies also have 
liberal policies towards non- 
homeowners. The survey 
found that nearly all com- 
panies reimbursed renters 
when they were moved. 

For example many met the 
cost of terminating a lease 
early. Others reimbursed search 
fees for new premises and the 
differential in rents in more 
expensive areas. 

Looking stead, about haK of 
the companies surveyed ex- 
pected to transfer the same 
number of people in 1982 as 
they did in 1981. Sightly more 
— 36 per cent — said they ex- 
pected to move less and 14 per 
cent expected to move more. 

* Employee relocation policies 
among major UJi. - corporations, 
1932, available from Merrill 
Lynch Relocation Management, 
4 Corporate Park Drive, White 
Plains, NY 10604, U.S.A. Price 
$10 far summary and $25 for 
full report 

A. K. 

A lack of 
intellectual 
curiosity 

“IT IS obvious that a strongly 
export-oriented economy needs 
people who are capable of pur- 
suing the interests of individual 
enterprises In foreign countries 
and foreign markets. But for 
a variety of reasons West Ger- 
man companies seem to find it 
hard to won qualified aspirants." 

This warning is given in a 
study by the institute for the 
German Economy, in Cologne, 
into the question of whether 
Germans are really becoming 
increasingly loath to work 
abroad. 

Based on a survey of 626 
West German enterprises — pri- 
marily industrial companies 
with an average workforce of 


between 4,000 and 5,000 — the 
study shows that employees of 
big concerns shun working 
abroad even more than those of 
small or medsxmsized busi- 
nesses. 

Managerial personnel of big 
, concerns are the least witting to 
try their luck in a foreign coun- 
try. While engineers and tech- 
nicians usually go abroad for a 
precise period of time and on 
coming back are not faced wvth 
MerarcMcal worries, managers 
fear that during their foreign 
stay others may advance their 
own careers— possEMy at tire 
“ exile's ” expense. 

Wolfgang Nenmeier, of 
Robert Bosch, the Stuttgart 
electricals concern, adds a more 
fundamental observation. “ I 
am under the impression that it 
is no- easier to post somebody 
from, say, Stuttgart to Hfide- 
sfaeim in Lower Saxony than 
from Stuttgart to Sao Paulo." 

Nenmeier found that when 
advertisements for openings at 
Bosch specified that junior 
executives were expected to go 
abroad for the company for a 
time, it had a distinctly off- 
putting effect It did not even 
help, he explains, when appli- 
cants were told that their long- 
term career prospects with the 
company would be better if they 
gathered experience abroad. 

Nor is this reaction reserved 
to married managers. Even the 
inclination of young single 
people. 

It blames this yearning for 
security on the part of young 
managers not only on a growing 
feeling in the Federal Republic 
that one’s very existence, let 
alone one’s career, is becoming 
increasingly less calculable. The 
federation also attributes it to 
a lade of flexibility and intellec- 
tual curiosity a decline in 
open-mindedness in many 
people — phenomena which are 
also reflected in West German 
students' growing reluctance to 
study tor one or more terms 
abroad. 

Pressed tor reasons for their 
resistance to foreign postings, 
49 per cent of managers dted 
“family affairs." Nenmeier con- 
firms that the family plays a 
great role in the decision 
whether or not to accept a job 
offer abroad, not only in respect 
of children's education but also 



where wives have careers of 
their own. 

Another important argument 
is that with the recent increase 
in bouse ownership in 
Germany many people fear 
leaving their property behind, 
says Nenmeier. 

In contrast, however, the per- 
sonnel officer of a large cor- 
poration believes that “family 
reasons” are only used as a 
front to avoid an unattractive 
posting aboard. 

Roughly 31 per cent of the 
executives unwilling to go abroad 
admitted to having “reserva- 
tions about foreign living con- 
ditions,” pointing to the difficult 
dimates and less leisure time 
of some foreign postings. 

Another 10 per cent were 
afraid of losing out financially. 
In this context, it is crucial to 
know whether a company is pre- 
pared to continue its social 
security contributions under the 
German, system for the employee 
abroad. 

BASF, one of the country's 
big three chemical giants, em- 
phasises that in principle it 
treats its employees in foreign 
countries the seme as those at 
home. And Daimler-Benz says 
it gives “binding resettlement 
promises, the usual 50 per cent 
share in German social security 
contributions and an annual 
examina tion of salary and com- 
pany pension commitments.” 

Finally,' 18 per cent of the 
rejectors of a stint abroad 
think that an interruption of 
their present career may not be 
advantageous. Indeed, says 
Jochen Kienbaum, one of West 
Germany's leading management 
consultants, these fears may not 
be groundless. Many successful 
executives abroad fail to realise 
that they are running the 
danger of turning into 
specialists who will not be able 


to compete on the way to the 
top with capable all-round men. 

A surprising result thrown up 
by the study is that although 
98 per cent of the enterprises 
questioned had no doubts that 
their success in foreign markets 
largely depends on the qualities 
of their employees, and nearly 
as many^-94 per cent — 
described experience gathered 
in foreign countries as an im- 
portant element of career 
experience, every fourth com- 
pany admitted that it did not 
promote its staff’s wish to go 
abroad. Some companies even 
admitted to hampering such 
desire. 

Reasons given for this attitude 
were that the employee could 
not be spared from the domestic 
business, or that a posting 
abroad and the preparation for 
it would cost a lot. Roughly 10 
per cent said they were con- 
cerned that a mission abroad 
might awaken professional 
expectations in their employees 
which would be hard to fulfill. 

The -Cologne Institute comes 
to the conclusion that the 
personnel problems connected 
with the Federal Republic’s 
industrial involvement in other 
countries have to be solved, in 
the tost place, by the companies 
themselves. It holds that 
employees' mobility and flexi- 
bility are primarily influenced 
by training, financial incentives 
and career development offered 
by the companies. But so tor. 
it says, only a relatively small 
number of West German enter- 
prises pursue a personnel policy 
which makes working abroad 
part of an executive’s career 
pattern. The Institute also 
found that the companies expect 
the state’s educational system 
to improve young people’s 
preparedness for life abroad. 

k s. 


Blowing the whistle Qq 
on fleet car costs 


THEBE ARE &8m company 
fleet cars on Britain’s roads and 
they are costing thear owners 
millions of pounds more Awr* is 
necessary because of sloppy 
management, according to PHH 
Services of Swindon, the UK 
subsidiary of an American group 
that claims to be the world's 
largest vehicle leasing company. 

For example, an analysis of 
the recent repair costs of fleets 
for which it has just taken over 
the management showed that 
many garages overcharge when 
bins are not scrutinised by 
experts. 

One PHH client had pre- 
viously been overcharged on ser- 
vicing and repairs by up to 
£20,000 a year. Another had 
been overcharged by an aver- 
age of £50 each oh 10 cars a 
month. 

Companies which do their 
own servicing and repairs do 
not escape, according to PHH. 
It found some clients’ own gar- 
ages were overcharging by 50 
to 100 per cent for labour. 

Obviously it is tempting for 
garage managers to absorb 
underused labour costs by pad- 
ding fleet car maintenance bills. 
In one fleet extra costs from 
this practice totalled £50,000 
a vear. 

Whether or not the fleet man- 
ager has been consenting to the 
overcharging it quickly disap- 
pears when a garage— either 
internal or external — realises 
that all charges are carefully 
lo oked at by experts. 

PHH, which manages over 
18,000 vehicles in Britain and 
therefore has a wide base for 
comparison, has also established 
to its own satisfaction that to 
hang mx to a car too long— a 
temptation tor companies when 
times are bad and carix flow low 
—really does cost a company 
money. 

One co m p an y which extended 
a fleet's life by two years in- 


creased its repair and service 
bill by 40 per cent 

Bli ssed services dost money 
too. PHH reckons that main- 
tenance costs more than double 
and the likelihood of engine 
failure trebles when vehicles 
miss one or more services. 

Some people go too far in 
the otixer direction, however. In 
one fleet it was found that five 
salesmen and three servicemen 
were off the road for one day 
every week for car “adjust- 
ments." “Prompt action made 
an impact on revenue and pin- 
pointed managemen t weakness," 
says PHH. 

And what about buying the 
cars in the first place? Function 
as well as position in the 
hierarchy should be considered 
when choosing car types, airgnes 
PHH. 

The generally-held principle 
is that the more senior people in 
a company should have the 
larger cars. However, a sales- 
man who carries heavy loads 
often needs a larger car than 
his manager. When the mana- 
ger's ego gets in the way of 
common sense it can lead to the 
dangerous overloading of smaH 
cars and, inevitably, increased 
maintenance costs. 

Another area where money 
can be halved when buying new 
cars is on those “ extras ” which 
are so profitable for the vehicle 
manufacturers. 

On an average purchase of 
100 vehicles a year, PHH says it 
can save more than £5,000 by 
keeping the cost of “ extras " to 

a in fninrnm, 

On the other hand, PHH main- 
tains that it is not worth skimp- 
ing when it comes to buying a 
vehicle intended for a special 
job. One new client had spent 
£4,200 on modifications after 
buying vehicles with the wrong 
specifications. 

Kenneth Gooding (JuL/ 




Hsii 

1. 


•t 

1 v 


Business 

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Water Management for Pack- 
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The Image of Business in the 
Media, London. June 16. Fee: 
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the Corporate Responsibility 
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Quality Control and Robotics, 
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ton House, 70, Grafton Way, 
London W IP 5LN. 

Physical Dis tri bution Manage- 
ment, Brussels. June 21-25. 
Fee: BFr 42,000 members, 
BFr 40,000 non-members of the 
International Management Asso- 
ciation. Details from Maxxage- 
ment Centre Europe, avenue 
des Arts 4. B-1040 Brussels, 
Belgium. 





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FmSS^Hmes Monday ; May 17 1982 



13 


THE ARTS 


Sadler’s Weils 



by CLEMENT CRISP 


CoppGlid . is a very serious 
ballet. Its score is one of the 
greatest written for dancing; its 
harrative is strong, theatrically 
' efficient; -its characters -are not 
easy to play well, and its dances 
— in something like their 
traditional form — ■' are taring. 
Vet it has. across the years, be- 
come associated with young 
dancers, or with soubrettes, 
though Danilova, Markova, 
Slavenska, Fonteyn. May, 
Makarova have all shown that it 
requires the gifts of artists of 
finest calibre, and the ensemble . 
dances of the first act demand 
the kind of stylistic- panache 
entirely outside the powers of 
British dancers. 

On Saturday . afternoon 
Sadler’s Wells Royal Ballet pre- 
sented Peter Wright's version — 
■it appears slightly edited since 
last I saw it— in decent enough 
fashion, with two young artists 
making their local . debut as 
Swaidlda and Frants and the 
numerous (and vocal) tots and 
their companions in the 
audience delighted by events. 
So, up to a point, was L 

The staging is intelligent* 
except in its lighting, which 
would have us believe that the 
.first act lasts from, dawn to 
dusk; the company are as 
energetic as the confines of the 
Wells stage will allow; Nicola 
Katrak Is strong on smiles and 
charm, though rather less so on 
bravura, as Swanilda, and 
Roland Price has the youthful 
ease and technical accomplish- 
ment to make an . outstanding 
Frantz; Barry Wordsworth con- 
ducted the miraculous score, as 


Wigmore Hall 


if he loved iL 

It was all quite sound, and the 
occasional annoyance — three 
ludicrously dressed chaps bang- 
ing about the stage ■ . in 
“Combat”; the weird prevalence 
of the leg-of-mutton sleeve; 
same under-danced variations in 
the last act festivities— did not 
detract from the pleasures of 
the occasion. 

But there is a sense in which 
this staging, like nearly every 
other - 1 have seen, minimises 
Coppeiia’s greatness, its Hoff- 
mann esque dreams (the al- 
chemical desire to create life),' 
its sentiment (the nature of 
love; and the way in which 
Swanilda wins Frantz), and its 
identity as a late piece, of 
balletic romanticism, with its 
old-fashioned conventions in the 
last act divertissement, and its 
uncorrupted innocence. 

Perhaps, as with The Nut-, 
cracker, no production can fully 
realise the qualities implicit in 
score and action. Perhaps, as 
Roland Petit so admirably 
showed, it needs radical re- 
thinking: at least Petit made it 
a serious tale, as incidentally 
he did The Nutcracker. Perhaps. 
Z am asking altogether too much 
of producer and dancers; but I 
wish that Mr Wright and his 
company were willing to stress 
the poetic mystery of the ballet 
as well as. its sunlit charm. Then 
Coppeiia might look the master- 
piece it is, and every role 
acquire the authority which 
Desmond Kelly so magnificently 
gave to the minute and usually 
unconsidered appearance of the 
Duke. . 


Gabrieli Quartet 

by DOMINIC GILL 

* •. v • 

Anyone who had left at the It’s an intriguing and effective 
interval of the Gabrieli String work, scored for the unusual 
Quartet's recital on Saturday / combination of violin, viola and 


might have fairly assumed thait 
they had heard - the first half 
of what was to be no more than 
a solid, useful, but largely un- 
special evening's music-malting. 
That they would have been 
wrong is only another confirma- 
tion of, and tribute to, the 
nature of Five music, whose very 
lifeblood is its magical unpre- 
dictability— what else, after all, 
persuades us to venture into 
“the 'concert hall, instead of stay- 
ing at home with a familiar 
record? 

The Gabrieli had begun 
worthily, no more, with a 
sensibly - dressed, chtmkily- 
knitted account of one of 
Haydn's greatest quartets, the 
G major op.77 — which gave us 
the notes well enough, though 
it plumbed no depths and found 
few soaring lyrical heights in 
the marvellous and ever- 
changing sequences of the 
music's quicksilver dialogue. 
Rhythms were clear but stiff, 
as they were too in the Gab- 
rieli’s performance of the rarity 
of their programme (justifying 
its inclusion in the Wigmore’s 
“ Russian Series ") — the second 
quartet of Chaikovsky’s younger 
contemporary Anton Arensky, 
composed in 1894 and dedicated 
to the memory of the master. 


two cellos, and has authentic 
dark Chaikovskian blood in its 
veins (although the influence 
is held to be as much the other 
way round). The Gabrieli, with 
the cellist Moray Welsh, gave it 
intelligently: but without robust- 
ness, so that its darker currents 
seemed a little pale. 

From the opening pages of 
Schubert's C major quintet, the 
Gabrieli’s finale, for which they 
were joined again by Mr Welsh, 
it appeared that the evening's 
mark was fixed: here once more 
the playing was decent, but 
listless and curiously coarse- 
grained- But suddenly — the 
point, in the middle of the first 
movement’s development, can 
be exactly marked — a spark 
was struck: and the perform- 
ance from that moment on 
came together with wonderful 
assurance and ease. It was a 
magical transformation, which 
caught every colour of the 
music: the timeless ardour of 
the adagio especially, the 
surprise and strangeness of 
the scherzo’s trio, the vigour 
and warm embrace of the 
finale. And a splendid vindica- 
tion, both of the Gabrieli, and 
of the music critic’s golden 
rule: never leave before the 
end. . 


Awards. for young photographers 


Bausch and Lomb Sofiens 
division, manufacturers of con- 
tact lenses, is sponsoring the. 
Bauscb and Lomb 1932 Young 
professional Photographers of 
the Year Awards, open to both 
photographers’ assistants and to' 
all students in the UK who are 
taking a full-time photographic 
course. 

Prizes are to the value of 
£6,500 plus an exhibition of the 


winners’ work which will be 
staged at the photographic 
Information Centre, 84 Newman 
Street, London, Wl. . ' 

Realistic working briefs have 
been set, and will be judged, 
by four of the UK’s top photo- 
graphers in the following cate- 
gories: Fashibn/Beauty — Stuart 
MacLeod; Industrial — Don 
Fraser; Reportage — Ken 

Griffiths: and Still life — Max 
Forsythe. 


i 



Model by Sir Philip Powell of die International Conference Centre for the Government to be built on the 

Broad Sanctuary site, Westminster, 

Architecture 

Academies and competitions 


by COLIN AMERY 


It has been quite a week in 
London for the art of architec- 
ture. The opening of the Royal 
Academy Summer Exhibition is 
no longer an event to cause 
seething excitement in the 
artistic breast but it is the only 
annual show where a group of 
architects show their work 
to . the general public. The 
announcement of the results of 
the full scale architectural com- 
petition for the 12 acres of 
riverside land at Vauxhall also 
brought architecture into' tile 
public, eye. 

First of all the Royal 
Academy, which is an exhibition 
heavy with a sense of dijd vu. 
It is in the nature of academies 
to be conservative and the 10 
or so architect academicians 
are no exception. There are 
interesting developments in the 
world of architecture at the 
moment. Ignoring the blatant 
commercialism of the Royal 
Institute of British Architects 
there is a concern among 
serious younger architects with 
the values of history and every- 
where. particularly the schools, 
there is a revival of interest in 
the art of drawing. 

There is ’also a renewed 
interest in style which is still 
abused by the older generation 
as mere- trendmess. . Another 
area of great interest and 
development (which is to get 
more coverage in this column) 
is the design of the domestic 
interior. It is probably true to 
say that this is an area where 
architects have missed out 
Excellent and original design 
for the interior comes from out- 
ride the profession. 

In the Project for a Public 
Building, by Craig W. Anders, 
the design for a mausoleum by 
Michael P. Stiff and the regular 
entry by Quinlan Terry there 
are signs that the art of draw- 
ing and the development of an 
interest in classicism are bear- 
ing fruit. Even in the work of 
a large commercial firm like 
Thomas Sunders Partnership 
tiny elements of the new thank- 
ing are having their effect. 

This organisation exhibits a 
design for an office building in 
Fleet Street which is glass with 
large classical details on the 
facade. Even an architect I 
have always thought of as a 
modernist and a pretty pure one 
at that, Michael Manser, shows 
a house which he calls, rather 
puzzling! y. Neo-Palladian House. 
Is he taking dangerous first 
.steps down the Post-Modern 
path? 

Sir Geoffrey Jellicoe’s stylish 
drawings for his am a z in g new 
landscape garden at Sutton 
Place in Surrey are among the 
best things in the show. First 
of all it is comforting that any- 


one is really building cascades, 
.grottoes, and an avenue of 
fountains in these hard times, 
and second, the presentation is 
so splendidly spirited in pen 
and ink. 

Also for Sutton Place is a 
very fine piece of new furniture 
— A Gotnick tallboy — beauti- 
fully drawn by Stuart Taylor, 
a talented and knowledgeable 
member of Sir Hugh Cassou’s 
architectural office. 

The Academy show provides 
a chance to see two major 
projects before they are built: 
the headquarters for the Hong 
Kong and Shanghai Banking 
Corporation, by Norman Foster 
of Foster Associates, which is 
now building in Hong Kong; 
and Richard Roger’s proposals 
for Uoyds in the City. 

Both schemes are in the top 
flight of technical achievement 
and both have aesthetic quali- 
ties that spring from the 
quality of their conception. 
Both are projects that add 
lustre to the name of British 
architecture despite the fact 
that they employ a technical 
imagery many people find un- 
sympathetic. 

There is plenty of architec- 
ture v of a smaller scale that uses 
more traditional materials and 
vocabularies, particularly hous- 
ing by Dixon del Pozzo, a 'house 
by Aldington Craig and the 
much talked about but really 
pretty uncon troversial addition 
to the fire-damaged church at 
Barnes by Edward H. CulUnan. 

It is unusual in these diffi- 
cult days to find a large new 
public building for a prominent 
site at Westminster. Powell and 
Moya’s International Confer- 
ence Centre for the Govern- 
ment, to be erected on the long 
vacant Broad Sanctuary site by 
Westminster Abbey, is promin- 
ently displayed in a model. It 
is a strong competitor for the 
surrounding mass of great 
architecture although its rather 
blank architectural vocabulary 
puts great stress on the quali tj’ 
of the materials used and the 
need for craftsmanship. I sus- 
pect that the real joy of the 
design lies in the interior. 

The Royal Academy demon- 
strates the same dilemma as 
that which must have faced the 
assessors of the Vauxhall Cross 
competition. „ They selected 
from 128 entries three short- 
listed schemes, each one of 
which represented a distinct 
school of architectural thought 
The winner is, frankly, the least 
interesting of the three. It is 
a wall of offices buttressed by 
stepped housing by a young firm 
of architects, Sebire Allsopp 
working with Ted Happold, the 
engineer of the Pompidou 
Centre. 


■What the winning sriieme 
may have in technical dash and 
logical site use it loses on scale 
and imagery. A long zig-zag of 
buildings at one point nearly 
200 ft high, to the public eye 
It will always be an office wall 

Terry Farrell, on the other 
hand, who was a . runner-up, 
tried hard and almost succeeded 
in breaking up the solid office 
block into a series of pavilions 
of varying sizes that took on a 
classical style. The public liked 
this scheme the best because 
it was saying something new 
about city architecture in a way 
that is easily understood and 
witty and elegant Dit and ele- 
gance don’t go far with devel- 
opers. 

The other short-listed scheme 
by Nicholas. Lacey was a denser, 
more organic and watery exer- 
cise. It took part of the Thames 
into the site and allowed some 
of the office buildings to over- 
hang the water. 

Mr Heseltine will decide 
today whether to put the win- 
ning scheme through for a 
special development order from 
Parliament I am pretty sure 
that he will back the judges and 
the developer’s choice of win- 
ner. His competition had as its 
object a raising of the standard 
of commercial-architecture, and 
it is a fact that the winning 
scheme advances that cause, 
although it is a safer and less 
interesting scheme than either 
of the runners-up. 

Architecture still faces the 
dilemma of the need to please 
the public, satisfy the devel- 
opers and lift the heart at the 
same time. At the RA and on 
the South Bank of the Thames 
the struggle is just beginning 
— and only just 

Giulinrs return 
to ‘live' opera 

The Royal Opera's new pro- 
duction of Falstaff— a co-pro- 
duction vfith the Los Angeles 
Philharmonic and the Teatro 
Commuuale. Florence — will 
open on June 30. when Carlo 
Maria Giulini will return to 
Covent Garden after an absence 
of 15 years. 

After the Royal Opera’s per- 
formances — June 30, July 3, 6, 
9, 13 and 16 (when a video 
recording will be made by 
Covent Garden Video Produc- 
tions. together with BBC Tele- 
vision, for later showing on 
television and commercial 
release on video, disc and 
cassette), the production will go 
to Florence in May 1983 for the 
Maggie Musicale, after which it 
will return to Covent Garden 
and remain part of the Royal 
Opera’s repertoire. 


Leeds Playhouse 


A Midsummer Night’s Dream 


by B. A. YOUNG 


Oberon, Titania, Puck, and all 
the fairies are black; And why 
not? They must he readily dis- 
tinguished from the mortals, 
and they took lovely. "I by no 
me ans repent the introduction 
of my Africans," said “ Monk ’’ 
Lewis of the blacks he put in 
Wales. “ I thought it would give 
a pleasing variety to the 
characters and dresses. . . . 
could I have produced the same 
effect by making my heroine 
blue, blue Td have made her.” 

So here is Ewart James 
Walters, as tall as a tree, loom- 
ing over the forest like a jet 
idol, but unhappily relapsing 

into monotony when he speaks. 
Here is Cassie McFarlaoe. a 
fairy Millie Jackson as Titania. 
And here is the lithe, mobile 
Leo Wringer flitting about the 
set as an enchanting Puck, who 
wU-1 be even better when he 
puts as much fun into his voice 
as into his movements. Around 
them are no less than 13 black 
fairies, recruited from a local 
school. 

The production, which is 
directed by John Harrison and 


designed by John Hall£. »s 
uncommonly pretty. Perhaps it 
doesn't sound pretty: there is 
the Playhouse’s plain oval open 
stage, undecorated, and behind 
it, rows of pktixi rectilinear 
uprights, arranged in threes 
like a wall of cricket stumps. 
Now and then the rows move 
slightly to one side to add a 
touch of menace to the woods. 
The fairies are dressed in white 
singlets, the mortals wear weeds 
of Athens, more or less. 

Janet Ellis’ s Hermra is young, 
attractive and innocent, unable 
to understand why these 
wretched things are happening 
to her. Victoria Hard castle was 
born to play Helena — taller 
than average, with a quality of 
mockery in her vodtffe and in her 
face, even In her most serious 
moments. As their suitors. 
Derek Hollis's Lysander and 
Gordon Dulieu’s Demetrius are 
virtually incerchangeable, both 
of them pleasant, both of them 
likely to be pleasanter in a 
week’s time when they begin to 
live their lines as well as speak 
them. 


There is plenty of slapstick , 
from a devoted bunch of 
amateur actors, led by a Peter 
Quince whom Stephen Hancock 
supposes to have tried to look 
like an old-time matinee idoL 
John Branwell’s Bottom is one 
of those men who use deter- 
mination as a substitute for 
inches, like Dudley Moore. His I 
ass’s head leaves all his face 
uncovered, giving him freedom 
for the guffaws and giggles that . 
he acquires with his translation. 

In their tedious, brief play, he • 
is accompanied by a cockney 
Thisbe about eight feet high, 
a funny performance by Ivan 
Steward, only I often couldn’t 
bear what he said. ? 

Theseus and Hippolyta 
(Gregory de Polnay and '• 
Carmen Rodrigues) begin the \ 
evening by speaking their lines i 
over a wrestling bout, an event 
that- sent my heart into my , 
boots. Once they were content \ 
to pass the four days to their ' 
wedding with hunting instead - 
of fighting, all was well. 


Young: Vic 


Romeo and Juliet 


by MICHAEL COVENEY 


The trouble with unsatisfac- 
tory productions of Romeo and 
Juliet is that the two hour traffic 
of our stage gets stuck in a jam 
and arrives one hour late. So it 
proves on this .occasion, 
although the direction of 
Andrew Visnevski — who has 
made a little name for himself 
with his Cherub Theatre Com- 
pany — is not totally devoid of 
interesting ideas. 

The day will no doubt come 
when comment on the colour of 
actors’ skins is irrelevant But 
integrated casting is such a hot 
issue in the theatre that I- must 
first applaud Mr Visnevski’s in- 
novatory move of introducing a 
black Romeo and a white Juliet 
in a. melting pot of Montagues 
and Capulets who show both 
colours. The tactic obliterates 
any faint of racial tension, for 
the dispute Is one of name and 

Boulevard 


tribal affiliation. 

Up to the interval and 
Mercutio’s death, the play is 
carried by a strong sense of 
street manners, from the 
moment Mark Heath’s robust 
Peter (much better than, his 
doubled Montague) bites his 
thumb with a crude pop and 
sets the tone of sexual weaponry 
that runs through the text. 
Albert Wei ling’s popinjay 
Mercutio makes a nonsense 
of has lines, but he is unmis- 
takably part of the gang. These 
outdoor scenes, vividly carried 
by Roy Alexander’s mercurial 
attractive Romeo, reach a fine 
climax in the humiliation of the 
Nurse (Gaye Brown in an odd 
turban typical of the uneasy 
exoticism of the costumes), 
bawdily transformed from child 
minder > to whore by the 
gallants’ rudery. 


The Juliet of Alyson Spiro is 
-full of fizz and bounce. In the 
balcony scene her invocation of 
"Ro-me-oh” carries a suggestion 
of activity in the clover. But 
things really fall apart as 
tragedy invades the action. The 
lament for the dead girl, led 
by David Henry’s bombastic 
Capulet. is embarrassingly un- 
funny in its attempt at melo- 
dramatic excess. Eyen strong 
themes in the production, such 
as the roles played by the Nurse 
and the Friar (David Dodimead) 
as agents for thedr respective 
young clients, resolve in an 
indefinite, second-rate blur. 

Mr Visnevski reveals his true 
promise in his organisation of 
highly populated scenes around 
this exciting arena. The de- 
signer is Annena Stubbs, the 
good fights arranged by lan 
McKay. 


Clap Trap by MICHAEL COVENEY 


The main attraction in the 
Raymond Revuebar is still The 
Festival of Erotica. The pay- 
off, I suppose, in the little 
Boulevard under the same root 
is a new play by Bob Sherman 
set in a VD clinic. This pro- 
foundly unexciting, depressing 
affair is an ominous opening 
shot -from the American Theater 
Company founded to generate 
work for the 300-plus North 
American actors now resident in 
Britain. • 


Over the past ten years the 
London fringe, theatre has 
moved on from the days when 
such footling rubbish was com- 
monplace. Rubbish, of course, 
still abounds— you need a bed- 
ding of dross to set off the- 
jewels— but footling, derivative 
rubbish has 'been rejected in the 
rise of small, reasonably well- 
equipped theatres with one eye 
on standards and another on an 
Arts Council grant 
The three clients all share 


Institut Franpais 

Trois siecles d’humour 


Two performances' of an 
entertaining anthology of 
French humour from Voltaire 
to Sacha Guitry were performed 
in London recently by a gifted 
trio from Paris. It consisted of 
Bernard Dheran of the Com£dae 
Fcanpaise, Perrette Pradier, and 
Max Foumei who compiled the 
programme. 

Three large fin de si&de 
posters and a couple of chairs 
served as a setting, against 
which the players appeared, 
peppering us with bon mots 
from the likes of Micbaux, 
Cocteau, Obaldia and Pierre Dac. 


At times the rapidity of their 
speaking-rate was phenomenal, 
hardly leaving time for the 
laughs. Mile Perrette proved, to 
be no mean quick change artist; 
while M Dheran remained 
formidably impassive through- 
’ out in his beautifully cut 
lounge-suit. Playlets by Labkrhe 
and Feydeau rounded the even- 
ing off. 

The troupe, who "have been 
performing this programme in 
Africa, will appear with it in 
Manchester, Aberdeen and Edin- 
burgh before returning to 
France. 

ANTHONY CURTIS 


a predictably low view of 
women: “ I know about women; 
I don’t like them and ’* all 
good clap starts with a bad 
woman ” are typical lines, along 
with the generally nasty air of 
sexual boasting and locker-room 
camaraderie. The one girl, the 
nurse, remains behind an ugly 
safe door until the fin Ed 
moments. By which time, a few 
tired revelations have been 
made and the trio of pipe- 
dreaming wafflers have grown 
used to each other’s company. 
TheiT resolution? To sustain 
the macho conspiracy on some 
future fishing expedition. 

Tony Sibbald plays a man 
married for 22 years who 
blames his permissive lapse on 
the Eisenhower legacy; Harry 
Ditson, wound up and tuned 
into his earphones, is a loud 
mouth finally exposed as a 
virginal, jilted sailor, while 
Don Fellows is the O’Neill-style 
sage who has. rather boringly, 
seen it all. 

The author's own production 
is Tong-winded and static, 
allegedly set in Brooklyn. The 
script is as feeble as the con- 
versation is unconvincing. A 
thoroughly unpleasant evening 
■was not helped by the tackiness 
of the surroundings or the 
sullen manner of ushers in 
frilly shirts. 



theatres 


Sat Mat 


eft.® 

§36 3962. fcws 7.30. Thurt & 

‘oWer’tssbb. as. .!™ aufini 

CHILDREN OF A LESSER COP- 


ALDWYCH. S 336 6404' CC X&jKJg- 

Vt* 3 aSST tST^SS’ Y^n 

at CHARING CROSS ROAD by Helena 
HanS. 


APOLLO, ShBltetbu *y _Aya v CC W -437 


APOLLO VICTORIA <c»P. ^ tet0r &TUli 
THE SOUND OF MUSHL reULA 
CLARicyoiKtoj * . "“5* S 2L- s ? ld 1uJ 
Musical. Evas 7.30. Mai* * -tj 

2-30 . b£F ontce TO am-a W"- LIM j£ 

VSSKnfiiojtZsvssa 44 is. Red btoup 
bkgs 639 3092. 



' UlMUMMtH Mil n 

fe raasaaft* * ■ 

SZSLgay SkImHkl carta Paila MOT- 

ductorGUaka: Onrty* ^? oWla £„ aj T 
Ludmilla.- ^ r ? fc B |* , R D & P 2 ,0 from 

MuateMBlon torch. Raven Pictures rrom 
Concert. Beettoven Sbvna OPMW 


Eg l ABBS: 

BOULEVARD THEATRE In Kavmo-fd 

I sr YiSr ftp 

at 7.30. Book now 01-437 2661. * 


W B&M&, MUR* 

6A1UR- Red ' wire ore** .until Wed. 
Opens May 20 -t 7 om. It wig only, 
eves 8.0. Thur. Sat S.O A 8.0. Grp 
bltQ* 836 2379. 


CAMBRIDGE. CC 01-836 14MM056I 

7040. Evas Tuto-Frl 7.30. Sat b.00 A 
9.oo. tilt weak. Ends Sat- Freddie 
stari^mikFgoddard. pepe & his 
FRIENDS. Tfcta >010 £2 -SO. Party big* 
01-836 2379. Teledata 01-200 0200- 


CHICH ESTER FESTIVAL THEATRE. 0243 

7B13T2. Season sporwgred by MarUnl 
A Ro«SI LW. VALMOUTH. Ton't 7.3 0. 

COLISEUM. $ 836 3161. CC 2405238. 
Unrll May 29. LONDON FESTIVAL 
ULLEOw 7.30- Sat Mat 2.30 Untl 
Sat. GISELLE. Ton’t Ruennel Jolley r 
Me ternary. 


HKMS 

Cen*T- 

COMEDY .THEATRE. S 930 2578. Credit 

card bookings 83B IAmTgtp sales 370 
6061 . _ Mon-Frl 8.00. Sat 8.15. Mats 
Thur 3. Sat 5.15- Price £2-50-£7.00 
<MC suitable lor children*. STEAMING 
by HELL DUNN. 

COVENT GARDEN. 240 1086 , 5" Access/ 

Visa 836 6903 66 ampruseats avail lor 
all perts iMpn-SaU trpjri 1 0am 1 on the 
day ol pert. THE ROYAL OPERA. Ton t 
&. Frl at 6.00. Trlatan end Isolde' Toinor 
at 7.00. Shaaa Bpecanegra. 7T»nrs A Saf 
at 7.30. Euoeae Owgb. STRING 
--1ARTET* wed at ao 0. linden 
ttmt 8> Roger _»— *.• Sun at 8.00. 
Ilo Quartet A Porotfay TuUn. 


CT rural PM- 030 3216. CC 379 6S6S 
On reductions 836 3962- Mon U» Thur 
yjo Frl & Si it 6.00 & 8-45 ■ Ovfer 300 
performance* of DARIO FOJ CO ME D Y 
OthTT PAY? WONT PAY! Students 
iff seats £3-50. Bast seat* avail In 
advance. 


PENZANCE. Gala preview* Irotn MW 

17. First Night May 2 6. BOOK NOW. 


DUCHESS. S CC 01-836 6243. Monday 

■muTKtay at 8 0 Friday * Saturday 
rnursw VICTORIA WOOD .an d 

THE GREAT SO PR EN DO in. FUNNY 
TURNS.. 


^7. 

£& SSwVdi ■- * - s - 

Doaleavy* 

OP la. fe. 930 47«r i 


* mfcCRMCNt m J.JP. 


FORTUNE. - 836 2238. CC 01-200 0200. 

H outer Thompson's PEAR 

INC IN LAS VEGAS. Eve* 8.00. Fr l A 

Sat E A 9. Bar oneu 6 am. Pub prtcas- 


hTster.'Sal 

YEAR ' OF THE LONGEST - 
COMEDY IN THE WORLD. . NO SEX 
PLEASE WE’RE BRITISH. D'^ed W 
Allan Carls Group talus BOX OJlce 379 
6061 . Credit arc bookings 930 0731^ 


DREAMER Uv Roy Hudd. 


Gl£BE. S CC *37 1592. 439 

JOHN FORTUNE. MADGE ‘"J 

£?& mwwwi i 


GLOBE. S CC 437 1592. Mpn-Frl 7.30. 
Wed Mat 3-0. Sets S.O & 8.0. GERALD 
harper. Virginia mckenna m a 
personal AFFAIR. Prev June 7 at 7. 

-OPENS June 8 tat 7L 


HAY MARKET THEATRE ROYAL. 930 
9832. Until Mav 29. Ee» 7.30. Mat* 
Wed 2.30. Sai 4.0- PENELOPE KEITH. 

ANTHONY OUAYLE -ntEVOR PEACOCK 

In HOBSON’S CHOICE. A remedy by 
Harold Br 1 8 house. Directed &v Ronald 
Eyre. Running In repertoire with A Coat 
of Vanttfe and Captain goiibnwd. 


HAYMARKET THEATRE ROYAL. .930 
9832. PENELOPE KEITH In CAPTAIN 
. BRA SSBOU NO'S CONVERSION, by 
Bernard Shaw. Previews June 3. Opens 
June 10. ■ 

HAYMARKET THEATRE ROYAL. .^930 
9832. June 24-July 7-PTTER BARK- 
.WORTH In A COAT OF VARNISH. A 
I new play by Ronald MHIar. 


HER MAJEST1TS. 930 6606-7. CC 930 
4025-6. Group sales 379 6061. ive* 
7.30, Sat mat 3.0. FRANK FINLAY In 
AMADEUS by PETER SHAFFER. Directed 
by PETER HALL. 


KINGS' HEAD. 226 1916. Dnr 7. Show 

YgkgMafygS KiSSf * 

L WMCHA < EL P CRANFORD 

wb 

01-437 2055. 01-734 ’ f Ewi 

credit art reeerveOons. NOW BOOKING 
TO FEBRUARY S 1983. . 


LYRIC HAMMERSMITH. S « 

II. From Wed Lyric Tout* Theatre 

S T OUT OF THAT THENt £«H 7.30. 
8.15 Mat Thurs 2.30. From 27 May. 
YLEY MILLS. JONATHAN PRYCE 
TALLEY’S FOLLY by Lan lord Wilson dir. 

Marshall W. Mnson. __ . „ „ 

LYRIC STUDIO? From TM 20 M»« 
Eves 8 pm BERENICE by dl fr 

Chrirtsoher Fettes with Peter Eyre A 


lyric Theatre. 


Shaft** 


[bury Ave- Box 


MacDmuld- Eva* B-0- Mats Sat 5.8. 


MAYFAIR. 5 CC «9 3036. M^TJWS 
8,0. Frl & Sat 6 A 830. Richard Todd. 
Derrcn Nesbitt Carole Mew lam In ifflt 
■ BUSINESS OF MURDER. SECOND 
GREAT YEAR. 


MERMAID TO.. B<acJrfr££. |«. S 236 
5568. CC 236 5324. ROBERT HARDY, 
PHILLIPS DEAR LIAR. BWB.J.O. 
Srnt 5.15 *8.30 Half nuts Weds 

at 3.0. Group sales Bo* oBlee 01-379 
6061. Pre-theatre supper from 6. 


NATIONAL THEATRE. J-r 92B 2252. 
OLIVIER i one: i suae] Tan t Tomer 5.j»u 
. tSn MNjnnorVp^rl*— mpi e nd Jp y 
THE ORE5TEU. m iB e nr (yrtv 
prompt for 5J0 pb> ,aI 

comers nwst stand Dll Interval). 
LYTTELTON inroMcn.um 1U1PM Ton 1 

Then Mw 2B?29. 31. TRUE WEST by 
Rtataurant^Si® 2033. Credit card bfcss 
NT S .h| S at H*R MAJESTY’S. 


NEW LONDON. CC Drjry Lane. WC2. 
OT-405 0072 Or 01-404 4079. Evj 7.45 
Tues and at 3.0 and 7.45. The Andrew 
Lloyd- Webbar-T. S. Eliot Award WlnMna 
musical CATS. Group bookings 01-405 
1SB7 or 01*379 6061. LATECOMERS 
NOT ADMITTED WHILE AUDITORIUM 

IS IN MOTION. PLEASE BE PROMPT. 

NOW BOOKING TILL JAN. 29. 

OPEN AIR REGENT’S PARK. CC 5 4B6 
2431. Kate O' Mara and Christopher 
Ncarne In THE TAMING OF THE 
SHREW prevlows _ Irom June 4. A 
MIDSUMMER NIGHTS DREAM,, toLns 
repertory Jane 19 SHAW DOUBLE BILL 
from July 19. BOOK NOW. 


1-437. 6834. CC Hotline 
bew Lloyd-Webber's song 
S tarring Marti Webb 4 


PALACE. CC 01-437. 

437 8527. Andn 

AND DANCE, iarnna m«B ttcub a 

Wayne Sleep. Limited season new 
extended to Sept 25. 1982. Mon-Frl 

8 pm. Mats Wed 3. Sat MS. 830. Some 
pood seats still, available most parts. 
Group Sales 579 6061. 

PHOENIX THEATRE (Cbarlnfl Cross ilMtfi 
01-83E 2294-8611. Eyes 8.0. Frl A Sat 

6.0 & 9.0. ONE MO' TIME! THE GREAT 

NEW ORLEANS MUSICAL ONE M.O- 
TIME IS A GOOD TIMEI Group sales 
01-379 6061. Ring Teledata 01-200 
0200 for Instant confirmed CC bookings 
24-hour personal service available. 

PICCADILLY. 437 4506. CC 579 E5B5. 
Group sales 01-836 3962. 379,. 6061. 
Preitel Okg*. Key 220 2324. Mon-Frl 
7-30. Mat Wed 3.0. Sat 5.30 4 1 WS. 
Students £3.50 in advance. ROYAL 
SHAKESPEARE COMPANY In Willy 
Russell's new comedy EDUCATING RITA 


PRINCE EDWARD. Tim Rice and Andrew 
Lloyd-Webber's EVITA. Directed by 
Harold Prince.. Evgs 8.00. Mats Thur 
tecDoomy. 
ends 1C 
Hotline 

$£et rti»g - TN*d*ts 01-200 ~£>aoo. 


n prince, evgs e.uv. mid mur 
io my price) and Sat 3.00. E*g parr 
10.15 S Box OBlge 457 6B7T.JX 
ne 439 8499. _ tiro up sales 379 


PRINCE OF WALES THEATRE. ,«■ 
B6B1. CC Hotline 930 0646 or Teledata 

on entry. ROY HU DO. CHRISTOPHER 
TIMOTHY In UNDERNEATH THE 

s2?3 nrtflff 0 * 


QUEEN'S. S CC 01-734 1166. 439 M49- 
4031: »oup sales 01-379 6061. 'Even- 
inS B.OO. Mat Wed 3. Sat 5.15, and 

8.30. ANOTHER COUNTRY by J*»»n 
MKtfreK. 


RAYMOND REVUEBAR. CC 01-734 1593 
At 7.00. 9.00 and 11 -MV pm. Ooen 
Sans. PAUL RAYMOND msems THE 
FBTIVAL OF EROTICA. 

ROYAL COURT. 5 CC 730 J 7 AS. Evg 
"a.o“ Sat Mat 4.0. Mon Eves * sat 
Mat sU scats L2 NOT QUITE JERU- 
SALEM by Paul K ember, ■ 

■LOVaL COURT THEATRE UPSTAIRS 730 
2554. BAZAAR * RUMMAGE by Sue 
Townsend. E»BS 7JD. 


SAVOT. 5 01-636 S8M.CC 9M 0731. 

COMEDY noises OFF. Directed by 
MICHAEL BLAKEMORE. 


SADLER'S WELLS THEATRE EC1. 8S7 
1672167313856. Credit esrds 10 am 
-to 6 om 278 0071 >637 7505. Grp sales 
379 6061. 24 hr Instantly *«F*rt"SjL"* 
200 020 0 SADLER’S WELLS ROYAL 

BALLET Last WNk. EVE* 7J0. Sat Mat 
2.50. Ton’t: Copoelia. Tumor B. Wed: 
Danse* coneertantei. The Invhadon. Elite 
S vncofi&t lo iu . 

TfnrMiy 20 7.30 om Sadler’s. Wells 
Royal Ballet A iPtsreatioAat Goost Artists 
In a Rovai Gala. 

Australian TUnc* TfioaXre June 15 to‘2€. 
Spring Dance Subscription Season. Tel 
01-278 08S5 for brochure any time day 
or nMht. 

AMPLE FREE PARKING after 6.30 Pm . 

SHAW. 01-388 1394. JULES GROISET. 
The distinguished Dutch actor In A 
GENTLE SPIRIT by Dostoevsky. E»5» 

7.30. LAST WEEK. Ends S4t. 


ST. MARTINIS. CC 836 14d3. Evgs 8. 
Tuesday Mat 2.45. Saturdays 5 A 6. 
Agatha Christie’s THE mousetrap. 
World's longest-over run. 30th Year. 


836 2660-4143. RALPH 

RICHARDSON. JpAN CREWWOOD In 
THE UNDERSTANDING. A new play by 
Angela Huth. Eves Mon-Set 8 pro. Mat 
Sat at S pm. Group sales Boa Office 

379 6061. ; 

TALK OP THE TOWN. CC 01-734 5051. 
For reservation* or on entry. London’s 
Greatest Night Out from 8 om. 5 Mure 
of Top Entertainment. THE TALK OF THE 
TOWN GALA GALAXY. REVUE I930> 
with a east Ol 35. JOE LONGTHOR 
til pnQ. Dinner. Dancing 3 band*. 

VAUDEVILLE. CC 01-636 9988. Eves. 0. 
Wed mats zms. Sals 5, 6 8. Gordon 
JACKSON In AGATHA CHRISTIE'S 
CARDS ON THE TABLE. 

VICTORIA PALACE. CC. 01-834 1t317-8. 

01-B2B 4735-6. DENNIS WATERMAN. 
ANTON RODGERS. The New Musical 
WINDY emr .based on the play The 
Front Pagrj Directed or Peter Wood. 
Previews trom July's. OPENS JULY 21 
at 7. DO. Sub nightly at 7.30 pm. Mat 
Wed A Sat 3.cOom. 

VICTORIA PALACE. CC 01-834 1317-8. 

01-826 <7352*. Evgs 730 Mots Wed 
A Sat at 2.30. United number of good 
teats avail Utlt week. ELIZABETH 
TAYLOR In THE LITTLE FOXES by 
LILLIAN HELLMAN. Credit card* 
accepted. Group salee 01-379 6061 . 
MUST END JULY 3. 

WESTMINSTER, CC 834 0283. HANNAH 

GORDON. tfwEN WATFORD, PAUL 
DANEMAN in THE JEWELLERS SHOP 
by Pope John Paul II. Rad price prev* 
NOW Eves 7AS- Mats Wed * Sat 2.30. 

WHITEHALL- 839 6975. 930 80 TZ- 776,5 
CC 930 6693-4. JOHN WELLS In 

ANYONE FOR DEN IS 7 Mon-SM 6.16 pm 
Sat mat i pm. Student standby £4.50 
1 hr beiere Mon-SJtmaL MAY 17 
ONLY PERF COMMENCES 94W PM. 
MUST END MAY 22. LAST WEEKS. 

WYNDHAM'S. S CC 836 3028. CC 379 

6565. Grp reduction* 836 39t>2. Mon- 
Frl 7.30. Sat 4.JW & B.00. wed mat 

2.30. Record UK run for any Miller 
Otar. MUR end July 31. COLIN 
BLAKELEY, ROSEMARY HARRIS In 
. ARTHUR MILLER’S ALL MY SONS. 
O I rected by Michael Hlakemore. 

YOU NG VIC, fWarenoB J. 928 6S6 3 . 'lijt 

7 serfs. 7.30 sa: 240. ROMEO AND 
JULIET. All seats C2.30 {Parties £1.7SJ. 


F.T. CROSSWORD 
PUZZLE No. 4,873 

ACROSS 

1 Means of pushing new issue 
( 12 ) 

10 A jolly group displayed on 
the sleeve (7) 

11 Head of boil needs antisep- 
sis agent — to prevent tfcis? 

■ (7)- 

12 Tend to see runs scrambled 
by England’s opener (5) 

13 Ignoramus endlessly produo- 

• ’ ing cooking herb (8) 

15 Oxun? Bad influence on 
little Emily! (10) 

16 Land-mass of Bunn&Siam 

* interior and well beyond (4) 

18 Regretted sounding coarse 
<4) 

20 Overtures from a Co., per- 
haps, breaking up (10) 

22 Lecturer is religious mat- 
ters? (8) 

24 Game fish, bit of a hard- 
bitten character (5) 

26 Warning formerly plenty . . . 

. (7) 

27 ... lot more quivering on 
the staff (7) 

28 That is a lot for a new 
bouse 1 (84) 

DOWN 

2 Immemorial home for moan- 
ers, according to Tennyson 
(34) 

3 A RU team’s members are 
such enthusiasts (8) 

4 Invites offers (4) 



5 Place for research into parly 
speeches (10) 

6 Common obsession about 
night (5) 

7 Sailors— and how they are 
doing in some channels (7) 

8 Depicts tourist as agent tak- 
ing coat off (5-8) 

9 Speech-training institution? 
(7,6) 

14 Dig in school term? (10) 

17 Former wizard of top-of-the- 
table West Ham United? 
Yes and no (8) 


19 Spring jumper following zig- 
zag pattern? (34) 

21 Subsistence allowance for 
worker on strike (7) 

23 Grain taken from tropic isle 
<5) 

25 Quarter to noon— time far 
school (41 

The solution to last Satur- 
day's prize puzzle will be pub* 
lished with names of winners 
next Saturday. 



' Financial Tiitfes Monday Maf"!? 


FINANCIAL TIMES 


BRACKEN HOUSE, CANNON STREET, LONDON EC4F 4BY 
Telegrams: Rnantlmo, London PS4. Telex: 8954871 
'Telephone: 01-2488000 


Monday May 17 1982 


Where Britain 


AT THIS delicate stage in the 
Falkland^ crisis it is more 
important than ever that the 
British Government should he 
totally clear and consistent in 
stating its objectives. While 
differences of emphasis between, 
say. a statement in the House of 
Commons and a speech to a 
Tory party conference are prob- 
ably unavoidable, there must 
be no misunderstanding inside 
the country «»r outside it about 
the basis under which the 
Government would agree to a 
peaceful settlement. 


Ingredients 


The likely terms which might 
be acceptable, as they have 
emerged over the past "few 
weeks, contain three 
ingredients: first, the departure 
nf Argentine troops from rhe 
islands, accompanied by the 
withdrawal of the British task 
force: second, an interim 
administration in which a group 
nf non-combatant countries 
acting nn behalf of the United 
Nations might play a central 
role: third, a framework for 
negotiations about the longer 
terra in which the ultimate 
status of the islands is not 
determined in advance — that is, 
the British Government is pre- 
pared -to consider a number of 
possible outcomes, including 
at some stage Argentine 
sovereignty, provided that the 
wishes of the islanders are taken 
into account 


Readiness 


Precision 


Convening these points inlo 
a written agreement will be 
difficult, but not impossible, as 
long as there is a genuine will 
on both sides to seek a peaceful 
settlement. So fur the will has 
been more apparent on the 
British than on the Argentine 
side. Statements from Argentine 
officials have been confusiiu? 
and contradictory, arousing 
suspicions that they are spin- 
ning out negotiations- in the 
belief either that they will come 
out on top in a military conflict 
or lhat political pressures 
within Britain and among her 
allies will in rhe end deter the 
British Government from trying 
to expel the Argentine troops 
by force. The United Nations 
Secretary General, who has 
played an extremely valuable 
role as mediator, has some 
responsibility for ensuring that 


The Government alsn became 
increasingly aware of the need 
to keep the bulk of world 
opinion on its side: After the 
sinking of the General Belcrano 
two weeks ago — and the heavy 
loss of life involved — that inter- 
national support seemed to 
waver. It now appears to have 
been won back, not least be- 
cau«e of Britain's readiness to 
accept " the UN Secretary 
General as a mediator. 

The .next few days may well 
be crucial. The Government 
needs to bear in mind these 
three considerations. Inter- 
national support matters and 
should continue to be cultivated, 
principally by underlining the 
reasonableness of Britain's posi- 
tion. Further military action, 
should the UN negotiations 
break down, should be kept as 
limited as possible: for example, 
a series of dispersed landings on 
the islands rather, than a frontal 
assault on Argentine forces. 
Even if the hostilities escalate 
there should 'be — and should be 
said publicly to be — a con- 
tinuing Readiness to resume 
negotiations at any time. 


The Canadian 


conundrum 


THE COLLAPSE or the gigantic 
AJsands project to win oil from 
the oil sands of Alberta is more 
than a severe setback to the 
Canadian Government’s contro- 
versial cnogy policy and its 
hopes of achieving self- 
sufficiency in oil by 1990. It 
places a question mark over 
a new industrial polity sketched 
out by the Trudeau Cabinet in 
a paper released last November, 
together with the budget. 

In outline that policy was 
less interventionist than several 
ministers would have liked, con- 
stituting a change of general 
line from ihe National Energy 
Programme announced ihe year 
before. It made reassuring 
noises to foreign investors in 
Canada, and in particular sug- 
gested that the policy of bring- 
ing the oil and gas industry 
under Canadian control by 1990 
would not be extended to other 
foreign-comrolled industries in 
Canada. 

The drift of the document 
was that Canada's abundant 
resources of raw materials, and 
especially of oil and gas. should 
provide the springboard from 
which the economy could leap 
from its sluggish performance 
in recent years. New resource 
projects were to act as dynamos 
for manufacturing industry with 
their demand tor steel and high 
value technical equipment. 


balancing of these approaches 
is the fact that manufacturing 
is concentrated in Ontario and 
Quebec, whereas oil and gas are 
found in the East and West. 
This regional pattern is accen- 
tuated by the fact that Mr 
Trudeau's Liberal Party has lost 
almost all popular support 
except in Quebec and Ontario. 


Speculation 


Problems 


Thai si rat eg}- is nor invali- 
dated by the indefinite post- 
ponement of Alsamts itself. But 
the problems lhat caused all but 
one of the Alsands partners to 
pull out of the project apply to 
many of rhe other ventures 
upon which the Government had 
pinned ils hopes: rhe disappear- 
ance of oil and gas shortages 
in North America, liie prospect 
of cost, overruns, and punishing 
interest rales. 

These adverse circumstances 
have already caused further 
delays ,to the much-delayed 
Alaska Highway pipeline in- 
tended to carry gas across 
Canada from Alaska to ihc main 
U.S. markers. If mure of ihe* 
so-called mepaprojects are 
placed in doubt, the balance of 
the Government's n a seen; indus- 
trial strategy may In? upset. 

At bottom, the Government 
will face the perpetual conun- 
drum of Canadian economic ■ 
policy, whether to place the 
prosperity of the country on its 
resource base, or whether if 
necessary by interventionist 
methods — to try to foster the 
manufacturing sector. 

What greatly complicates the 


In the short run. the Govern- 
ment's dilemma has increased 
pressure from business and the 
provinces to bring down interest 
rates and to make a dash for 
growth. The accepted view in 
Ottawa has been that such a 
course would be self-defeating. 
Cutting interest rates unilater- 
ally would depress the exchange 
rate which, in turn, would force 
up prices already rising much 
faster than in the U.S.. Canada's 
main supplier and customer. 

Speculation that n change of 
course may. none the less, be 
on the way. has already taken 
its toll of the exchange rate. 
The market has been quick to 
recognise that Canada's cronic 
current account deficit does not 
permit experiments with inter- 
est rates. 

In the longer run Canada has 
two choices. It can try to put 
the current account to rishls by 
depressing the standard 
living, or if can follow its tradi- 
tional policy of relying cn 
capital imports to balance its 
external payments. 

The latter course is In keep- 
ing with Canada's status as a 
country with enormous develop- 
ment potential. That potential 
exists despite the circumstances 
that brought about Ihe Alsands 
fiasco. Even if the hydrocarbons 
off the Atlantic coast, in the 
Arctic, and in rhe Beaufort Sea 
are no! required today, they 
will he needed in the future. 
In the interim the economy is 
likely to remain in the 
doldrums, with only cyclical 
relief. 


Stability 


Nobody knows how long that 
interim period will last. A world 
economic revival, not to mention 
possible political upsets in the 
Middle East, would quickly 
transform the picture. Canadian 
political stability would prove 
to he a major asset for its re- 
source industries. In the mean- 
time Canada would bo unwise to 
prejudice its prospects of profit- 
ing from the turn-round by 
adopting industrial policies cal- 
culated to scare off foreign 
investors. 


BRITAIN'S CIVIL SERVICE UNIONS 


The Left reaps a 


By Philip Bassett, Labour Correspondent 


the talks do not drag on any 
longer than necessary- 

It is hard to see how the 
British . could move any further 
in any substantial sense to 
induce the Argentines to be 
more flexible. Some Tory MPs 
believe that too many con- 
cessions have been made 
already, a view which we do 
not share. 

It is vital that Britain con- 
tinues to adopt the most reason- 
able position possible so that if 
the UN negotiations were to 
break down, the blame would 
be seen to lie plainly with the 
Argentines. The British Govern- 
ment. too. would need to ex- 
plain — promptly and if possible 
before any significant military 
escalation took place — what was 
on offer and what the sticking 
point had been. 

Over the past few weeks the 
Government's public stance has 
moved markedly. At the outset 
of the crisis, there was a sense 
of outrage and shock that 
Argentina pad been able to 
accomplish the invasion in the 
first place. The task force was 
despatched in. response. Yet 
Government policy was sub- 
sequently refined tn a mixture 
of diplomatic and economic, as 
well as military, pressures. 


T he government 

soundly defeated Britain’s 
civil sendee unions in the 
unprecedented five months of 
strikes last year over pay. But 
the seeds of bitterness sown by 
that defeat were reaped last 
week in a series of sweeping 
left-wing successes in the unions 
which pose a new threat to 
settled industrial relations in 
the civil service. 

The financial bill for -the 
strike is beginning to come in. 
At the time the Treasury did 
its best toundeuplay the strike's 
effects on revenue collection, 
but Treasury officials now 
acknowledge that ' the unions’ 
figures on the strike were in 
fact much more accurate than 
their own. 

The Government has finally 
admitted that to hold down civil 
servants to only an extra half 
per cent on top of a much 
earlier offer of 7 per cent last 
year cost it some £500m in 
interest payments. That money 
is gone forever. Revenue flows 
are still not back to normal. 
About £570m in value added tax 
is still unpaid, though the 
amount outstanding was at one 
stage as high as £2.73bn. with 
some 588,000 VAT cheques held 
I up. 

Overtime working in the 
Inland Revenue has cut the 
To.lbn in outstanding tax right 
down, though some of it will 
never be recovered. There are 
tales for instance of strikers 
stuffing the cheques Into desk 
drawers, down lavatories and 
even into office cavity walls: 

The bill for industrial rela- 
tions, however, has not yet been 
fully presented. The legacy of 
bitterness of which so many 
union leaders have warned 
since the end of the strike, took 
concrete form last week in a 
series of major victories for the 
Left at the annual conferences 
of the civil service unions. 







Kevin Roddy being congratulated on his election as president of the Civil and Public Services Association last week 


First Division- Association 
(FDA). Represents, about 5.000 
senior grade civil: servants. 

-■This union- has no. political 
alignment but even its.members, ‘ 
who range up as far as White- ; 
ball Permanent Secretaries, > 
approved the union’s support . 
for the TUC’s campaign against , 
The Government’s Employment 
Bill— which ' FDA members 
helped to . draft. 

Institution of Professional • 
Civil. Servants (1PCS). Repre- 
sents - about 100,000 profes- * 
sibnal and technical staff. 

The Left is small in' this 
union, which is dominated bv 
members working in the Mini- ! 
siry of Defence, who tend to be ! 
politically moderate. However, j 
at the union's conference, which 
opens today in Bournemouth, * 
motions down for discussion, in- 
clude such ardent left-wing " 
causes as the five yearly -elec- l 
tion of . all full time officials ' 
which the Left has already won. ■ 
in the CPSA. and which could 1 
well be won in the 1RSF next , 
year. I 


Landslide 


The left in the unions— com- 
prising members of the Militant 
Tendency, the Communist 
Party, the Socialist Workers' 
Party, the International Marxist 
Group as well as those on the 
left of the Labour Party- 
scored heavily in three key 
areas: 

• Control — left-wingers sw.ept 
to power in elections in the 
largest union, maintained their 
hold on the second largest, and 
made significant gains in the 
tax union. 

• ‘Structure— the Left won in 
each union on the important 
issue of legitimising the Left- 
dominated local committees 
which ran last year’s strikes, 
arid kepi up the pressure to 
reform their unions in a way 
which would give the Left more 
control. 

• Policy — left-wing supported 
motions were approved at all 
the conferences, often against 
the wishes of the leadership. 
They included affiliation to the 
Campaign for Nuclear Disarma- 
ment and rejection of the recent 
agreement to introduce new 
technology in the civil service. 


On ail these issues the Right 
was in disarray. 

The gains won by the Left 
pose a threat to future relations 
with the Government. The 
landslide victory of the Left in 
the elections for the ruling 
national executive of the largest 
union will rule out compromise. 
Instead of having the upper 
hand, which they have clearly 
enjoyed since the defeat 
inflicted on the unions by the 
strike, the Treasury — and 
perhaps more particularly 
individual government depart- 
ments- and departmental 
managers — may suddenly find 
the left-influenced unions 
digging in their heels. 

The Left’s. successes can best 
be charted union by union: 

- The Civil and Public Services 
Association' (CPSA). Represents 
about , 180,000 civil servants . 
mainly in clerical grades, though 
with some key staff in data pro- 
cessing areas. 

Left-wingers gained their 
roost striking successes in this 
union, with the election to the 
union's presidency of Mr Kevin 
Roddy a hard line Militant 
Tendency supporter and rhe 
rout of the Right in the execu- 
tive elections: a right-wing 
majority of 16-10 was trans- 
formed into a left majority of 
23-3. including on the left seven 
Militant supporters and three 
Communists. 

This result is a major triumph 
for the Militant Tendency not 
just in the civil service unions 
but in rhe whole of rhe British 
trade union movement. The 
CPSA is now Militant's main 
trade union power base. 

Though the union has swung 
violently between left and right 
in the past, the significance of 
this year’s result is that it was 
achieved with nn election sys- 
tem which favoured the Right 
but which the Left, through 
harder work, has now learned 
to exploit. 

The new system did away 
with the old bloc voting in 
favour of voting in individual 
work places, but rhe Left has 


managed to get round this. For 
example in the union's largest 
branch,, at the Department of 
Health and Social Security's 
computer centre in Newcastle 
upon Tyne, where the CPSA has 
about 8,000 members the Left 
organised and got the votes at 
about 140 separate office ballot- 
ing meetings — a feat of organi- 
sation which the CPSA Right 
could never dream of matching. 

Despite stringent legal advice 
to the contrary the CPSA affili- 
ated to the CND. On pay, the 
Left won its aim of deciding 


who felt the unions had created 
in the committees a “ Franken- 
stein's monster.” 

The Society' of Civil . and 
Public Servants (SCPS). Repre- 
sents about 100,000 middle 
'grade staff including many key 
computer operators. 

The Left has hold sway in 
the SCPS for a considerable 
lime, led by two uncompromis- 
ing brothers at the core of the 
union's organisation — Campbell 
and Leslie Christie, as depuly 
and assistant general secretary 
respectively. However, the 


The election is a triumph 
for the Militant Tendency 
not just in the civil service 
unions but in the whole 
British trade union movement 


the union's annual claim at a 
special pay conference rather 
than leaving fl to full time union 
officials. The Left won motions 
calling for the union to with- 
draw from the only agreements 
the unions have struck- with this 
government since the strike— on 
new. technology and bn time off 
for -trade union duties. 

Finally, the Left overturned 
a previous executive decision 
by committing the union to 
campaign for the official recog- 
nition of the local Council of 
Civil Service Unions (CC5U) 
committees which ran the 1981 
strike. The CCSU nationally 
has ordered that these commit- 
tees be disbanded, but in fact 
they; have flourished m many 
areas, increasing the power of 
Ihe Left, undercutting the 
authority of the national 
leadership. As far as the Right 
is concerned they are alsu ful- 
filling the prophecy of one 
uiuiui leader during the strike 


SCPS has never been able to 
back effectively its left-wing 
policies because of the wide 
gap between its leadership and 
its much more moderate mem- 
bership. 

The hard left control of the 
union may be relaxed by a 
thorough-going review of its 
structure now being finished by 
a study team from Warwick 
University. The study’s likely 
central recommendation — a 
new regional structure — would 
take power away from the 
centre., and its initial findings 
arc increasingly disturbing for 
the left-wing leadership. On 
policy, the SCPS last week also 
rejected the new technology 
agreement and supported the 
recognition of the local CCSU 
committees. 

Inland Revenue ■ Staff Feder- 
ation (IRSF). Represents about 
fiS.000 staff in all except for the 
very highest grades in the 
Inland Revenue. 


Though the CPSA^ victories 
for the Left were more public, 
those in the IRSF were perhaps 
more significant because of the 
union's "traditional . political 
neutrality. The growing left- 
right division in the union 
emerged last week as. virtually 
open warfare, with right-wing 
leaders acknowledging that they 
had been all but routed. They 
gave notice of reprisal action 
against the .Left. 

The Left dominated the con- 
ference using the card vote of 
the larger branches in a manner 
unprecedented for the IRSF. 
This raises serious problems for 
the union. For instance, its 
largest branch, Manchester 
Taxes, with 4,000 members, cast 
its block vote for an SWP can- 
didate standing for the vice- 
presidency of the union’s Taxes 
sections on a mandating meet- 
ing at which 27 members turned 
up. 

Eventually, the Right fought, 
back and overturned the vote at 
a special general meeting at 
winch about 400 members 
switched the vote to the Right’s 
candidate. Four hundred mem- 
bers, though, are hardly more 
representative out of 4,000 than 
are 27. 

On policy, the - IRSF — 
astonishingly for a “vertical” 
union covering- all grades 
voted for the left-wing demand 
for a flat rate rather than per- 
centage pay claim; for CND 
affiliation for the local CCSU 
committee: and for an imme- 
diate overtime ban throughout 
the Inland * Revenue, which . is 
now in force. 

On structure, the hrnad Left 
—formally launched at the con- 
ference — is uniting 'around 
radical proposals from the left 
dominated Leeds Taxes branch, 
which were circulating among 
delegates as a " manifesto” for 
the IRSF. This calls for struc- 
tural changes which would give 
more power to the increasingly 
left-influenced Taxes Section of 
the union over its still politi- 
cally moderate Collection . and 
Valuation sections. 


Affiliation 


In general terms, the unions 
are about to set up a new, cen- 
trally controlled fighting fund 
for industrial action which will 
have an initial balance of about 
£500,000 but which will be 
boosted by regular payments 
every six months from all the 

unions. 

In party political terms the 
left has marie little gain. No 
union is affiliated to rhe Labour 
Party, and though a motion 
seeking affiliation was approved 
by "the CPSA conference, any 
more towards a ballot which 
would be legally required seems 
certain to be defeated, following 
the recent example of the 
National and Local Government 
Officers Association in which 
affiliation was thrown out by 
ballot by. nedrljr nine to one. 

The Government has tried to 
reduce the power of the civil 
service unions after last year’s 
.strike, with, its pay offer this 
year based on market forces: 
with the long term Megaw 
inquiry into civil service pay. 
which is likely, to find broadly 
in Ihe" Government's favour; 
with the provision of the 
. Employment Bill ' which 
threatens industrial action by 
civil servants: and with the 
•warning about the stopping nf 
Trade union does during indus- 
trial. action. which ' will 
effectively preclude a repeat of 
last year’s strikes at selected 


computer and other key centres. 

But meanwhile the Left 
though has picked other ground 
on which to fight. Left-wingers 
have recognised the defeat of 
the strike, just as left-wingers 
in the Labour Party recognised 
the defeat of the 1979 general 
election. Like the Left .in the 
Labour Party. The Left in the 
civil service unions has turned 
its attention to internal struc- 
ture and policy, where it has 
made considerable gains. 

Like the Left in the Labour 
party, too. the result of the 
Left's gains in the civil service 
unions could be of far reaching 
significance. . 


Men & Matters 


Quick-what’s the 


Banker's call 
to arms 


more aggressive and break intn 
this market." 

More dispatches from the 
front will follow. 


While the distance between 
Frankfurt and Bonn can be 
negotiated by means of a 
speedy and very pleasant train 
journey along the Rhine the 
two cities might well be as 
distant in every sense as 
Buenos Aires and London 
when it comes to banking 
rivalries. 

Little love Is lost between 
two of West Germany’s leading 
bankers. Dr Eckart van Rouven 
of Deutsche Bank in Frankfurt 
and Wolfgang Slarke of ihe 
Savings Bank Association based 
in Bonn. Each man secs him- 
self as the guiding light of 
German retail banking. 

But mention of one small 
word — Visa — is sufficient to 
make the two bankers forget 
their rivalry and stand shoulder- 
to-sho older as they face what 
they perceive to be their 
common enemy. 

The activities of the big U.S.- 
based payments systems group, 
which is now seeking to pene- 
trate the German market wiih 
its plastic cards, are not to the 
bankers’ liking at all. Indeed 
both declare impacable hostility 
tn the invader. 

Starke says. “I must say tn 
you that ii is very difficult to 
discuss and co-operate with 
Visa. They are very complicated 
people. This is my conviction: 
there . is w possibility of deal- 
ing with Visa." 

Van Hooven says: "They are 
trying to market the Visa card 
through BMW dealers. German 
bankers must ask themselves if 
they really want a BMW dealer 
to issue a card managed by Bank 
of America from h ba>e in 
Frankfurt.” 

Round at Bank of America 
Jim Haywood, who is trying to 
sell Visa cards to German 
customers, is undaunted by the 
big guns trained upon him: 
"We have jnst signed up an 
association of taxi owners round 
Dusseidorf. We are going to be 


Ambitious 


In a Chelsea street at the 
weekend a window was open 
to let in the hreercs of a lovely 
May day and inside a young man 
was pounding a typewriter. 

Hanging outside the window 
was a replica of a GLC com- 
memorative plaque nn wh«.-h 
were the words "Watch this 
Space.” 


the event of industrial disrup- 
tion elsewhere making normal 
working impassible. 

. Dixon excites their envy 
because he already has it in 
the melai trades in. Australia. 
And his government is bringing 
it in generally to cover all 
workers. 


Try a tent 


Boss bashing 


" It’s the same the whole world- 
over . . . it’s the employers who 
get the blame.” Such has been 
the tenor of talks between Mr 
John Dixon, chairman of Aus- 
tralia's engineering employers, 
and his British counterparts 
these last few day*. Both have 
1 1 government of the Right and 
neither is altogether pleased 
with it. 

Dixon, who it in Europe to 
study industrial relations, has 
had a typically robust rolmd of 

negotiations with the Australian 
metal trades union over its cam- 
paign for shorter working time. 
The union will not abide by 
the findings of the conciliation 
court, he. says. The Australian 
Liberal government is keen that 
the employers now take ihe 
union to the industrial court. 
But Dixon is refusing. He 
believe^ the union would not 
pay any fine. And ho is not 
sure that the government would 
back the employers. 

His , counterparts in .the 
British Engineering Employers 
Federation will have told him 
that they arc nor happy with 
the British Government because 
its employment legislation 
could disrupt dosed shops and 
hence industrial harmony. 

The British bosses are also a 
Iiltie sore with Norman Tebbit, 
Employment Secretary, for not 
bringing in their pet idea, a lay- 
off clause for all employees in 


America's once-booming energy 
conservation movement, already 
slipping in Ihe scale of national 
priorities a* a result of the oil 
glut, has just been dealt another 
blow. Energy conservation can 
damage your health suggests a 
new report from Ihe California- 
based Electric Power Research 
Institute. That body is a' ihink 
tank set up and generously 
funded hv ihe U.S. electric 
utility industry, it should he 
said. 


on the water a year ago when 
rowing against the Club 
Nautique de la Bourse ho Paris. 
Our City ' gents simply left the 
rowing cup behind in England. 

When the French rowers 
turned up at Henley on Satur- 
day. determined to carry the 
trophy back with Them by win- 
ning the fifth annual race in 
the series, tihe spirit of games- 
manship, could still be detected 
in the air. 

I nter national -- rowing events 
are started in French. The Stock 
Exchange Eight jumped the 
start, their captain John Gilt of 
Sheppards and Chase explaining 
later, *' We didn't understand 
the language.” ■, The French 
Veterans Eight (grey-bearcLs of 
over 35 years of age) also 
jumped ihe start saying later it 
was because they did under- 1 
stand the language. 


postage? 






Examining a sample of houses 
in Ihe Boston area the institute 
scientist! found -that in those 
ronservitton - conscious homes 
where the owners saved oil bv 
burning wood the fires made 
o ccinridf-rahle contribution tn 
fouling the air — " reducing its 
quality" s.iv the hijffins Primlv. 

Anri IT vn« skip -Urn log fire 
and switch on the solar power 
vow wilt nnr be much better nff. 
The institute has threatening 
words tn. sav about snlar homes. 
“ Thp cnncpnlnuori use - of stone 
ns thermal mass to absorb, 
store, and then release solar 
onorev fnr *.nnce hpal U cheap 
end nntrtiral. But it is now 
hein" rp-evnl Dated because there 
is also miAstinn about the 
hn-rsrrf from n\no«iirn ip r»dnn. f * 

Ririnn sas — a product of 
rnritiipi Hpf.i.v — emanates from 
rock nrnrinck such .ns the brick, 
tile block, and wjnoTPtc used in 
construction. 


As re-rows were considered a 
dangerous . innovation which 
might disrupt the luncheon 
arrangements the doughty oppo- 
ncnls were allowed ‘to carry on. 
The Slock Exchange senior boat 
beat the French by a length 
and onc^uarter while the 
Veterans achieved a dead-heat 
in their Tace — something that 
has only been done once in the 
history of the Oxford and 
Cambridge boat race. 

Dominic Freud, also of Shep- 
pards. who coxed the winning 
boar is "now known to his team 
as Exocet after steering with 
devilish precision to sink a 
passing sculler during recent 
training. • 


Us amazing how 


all those complicated 


postage calculations slow down your 
mall. And how much errors can cost you: Yel pushbutton 
Neppost Electronic Postal Scales give you precisely 
accurate postage, quidi' as a flash. When postal rates 
change, we automatically send you a new programme chip 
• in advance. It's so easy! And white you'reupdahng mailroom 
efficiency, don't miss bur-great new deal on the Neopost 
2205 Franking fvfeichi'ne. Makes franking good sense! 


QUICK-POST THIS HOW. 

LJJ1UJLL- •liU'JJSH 


Home game 


. | Emc • r*M: p.i «« israracwUcii 


Without tears 


The Stock Exchange Rowing 
Club snatched a pyrrhie victory 
out of a well- deserved defeat 


When two elderly Vlenppsc 
gentlemen rhatted over cpffpp 
the conversation turned to 
football. 

‘‘I wonder, how the Austro- 
Hungarian match will turn 
out?'' said. one. ■ 

" Who are they. . playing 7 " 
asked his friend. 


Observer 


1 
I 


Keeping itnsudi with technology 



0 


H 


i n-viG 
n- 










I^nandal Tiines Monday May 17 1982 


FINANCIAL TIMES SURVEY 


Monday May 17, 1982 











“Peace at home, peace abroad” was the motto 
of Ataturk, founder of modern Turkey* 

His heirs, the generals who seized power 
20 months ago, have restored calm to 
Nato’s flank. Economic growth has resumed. 
But there are still difficulties ahead. 



T T ’ ' " * .- .The tak 

Uneasy ride m is 

•y plummeted 

■ ' ■ • ' « ■ -' ...... ..were the -w 

the tiger s back £>i 

merit their 
* Part of t 

By David Tonge • 

• he solved 

BY THEIR own timetable, Turkey’s generals are remaining 

almost midway through their term in office. They P} itted _ t0 
must have expected that by now the going would have ; S"f an 0 t f a i 
started becoming easier! They have achieved most of . necessary 
their short-term objectives. "• • nnrest see 

Anarchy has been crushed. The authority of the £*(J ore 
state has been re-established. The economy has turned jri; msrh 
round and growth has resumed; this year GNP should because of 
increase 4A per cent in real terms. such as 

In the provinces, the crowds the country a new breed of Assembly 
turn out to cheer General institutions and politicians to Equally, ct 
Kenan Evreo, the Head of ensure his ideals were not srowth is 
State. In the cities many praise betrayed. further sw 

the peace the junta has By ^ standards, Ataturk He] 

imposed. Yet the regime* . ^ a formidable figure. Yet a 
mood is somewhat embattled wor id war has taken place since frn T^L 
and embittered, and often he died in 1938 and Turkey has 
defensive. .had to live through the And 

The reasons are simple, inevitable ferment caused by an ^tritrj ni 
Generals are practical men. industrial revolution and the haVe bee] 
They are accustomed to setting spread of mass education. under cont 
targets, giving orders, and see- Rural values and the tradi- Restructi 
ing results. Rut the problems tional barter economy have $15.5bn d< 
the men whose tanks seized given way to an increasingly pleted ant 
power in September 1980 now urbanised society. Advertising again been 
face are not susceptible to and mass media have caused a Euromarke 
simple solutions. Instead, it is revolution of rising expecta- been large! 
a measure of the' generals’ tions. .And the economy has 
ambitions that what they still been unable to deliver. 

do * » roTi “8 “ Add to this the long-term 

diflicuiL problems of an often feudal 

General Evren and his fellow and impoverished south east; 
commanders set out not merely racial and religious tensions Area: 781,0 
to bring peace, but to ensure fanned in recent years; unem- 
that this was the last time the ployment. of around 15 per ropujaun 
army intervened; it had done eent — and the structural prob- 
so previously in 1960 and 1971. lems facing the generals become x.g 8 - 

Their belief was that the clear. ■ . • 

country had strayed from Further, the problems have rer ra P lla - 
straight and narrow paths of been compounded by half a • - 

Ataturk, founder of the modem decade of inflation. Life was 1Tade 15,81 

Turkish state. Their proposed hard before the generals took Total exj 

remedy was to repair the over. For many it as now mucb Total im] 

pedestal on which he stands, harder. Real earnings of 

inculcating afresh his values unionised labour have fallen Agneuiti 

to an errant people, and giving -sharply. 


.- .The take-home pay of the 
influential urban - middle class 
of senior civil servants and ’ 
salaried professionals has also 
plummeted, while these groups 
. were the worst hit by the bank- 
ruptcy this winter of money- 
lenders ‘to whom many had 
given their, savings to supple- 
ment their income. 

Part of the generals* dilemma 
is that increasingly They see 
that many such issues cannot 
he solved in the . two years 
remaining uniil they are com- 
mitted to ho! ding elec t ions. 
Many of them accept that a. 
Substantial land reform is 
necessary to help bead off the 
nnrtst seen in some provinces 
before their takover. But a 
Bill to introduce land reform 
has just had to be withdrawn 
because of opposition in bodies 
such as the Constituent 
Assembly they selected. 
Equally, controlling population 
growth is crucial to prevent a 
further swelling &f the unem- 
ployed. Here, too, pace has been 
slow. 

Turning to the economic 
front, they -would like to 
improve the efficiency of the 
state. And what they have done 
is. striking. Public finances 
have been largely brought 
under control. 

Restructuring of the country’s 
$15.5bn debt has been com- 
pleted and the country has 
again been able to nibble at the 
Euromarkets. The doors have 
been largely opened to foreign • 


investment. Incentives are now 
provided to exporters, and some 
of the procedures have been 
simplified. 

Yet much remains to be- done. 
Only halting steps have been 
taken to increase the efficiency 
of the country’s State Economic 
Enterprises, the large bodies 
jvhich account for over two- 
fifths of manufacturing 
capacity. The swaddling clothes 
protecting Turkish industry 
remain almost as tight as. ever. 
And it still takes a Cabinet 
decision — usually requiring the 
signature of . every minister — 
to settle standards for, say-, 
spark .plugs and industrial boots 
or to decide whether the 
Turkish Ear, Nose and Throat 
Association can co-operate with 
its Mexican counterpart 

Then there Is perhaps the 
biggest timebomb of all — un- 
employment now running at 
around 35 per cent True 
Turkey has achieved a consider- 
able turn round in its balance 
of payments and now expects 
.to cease needing foreign aid 
in tbe next couple of years. But 
forecasts by the Organisation 
for Economic Co-operation and 
Development indicate ' that it 
will have to grow at annual 
average rates exceeding 6 per 
cent if unemployment is to be 
reduced. 

If this is one problem which 
will outlive today’s generals, a 
second is that of how 
tomorrow’s political world will 
function. The generals' plans 


BASIC STATISTICS 

Area: 781,000 sq km Total disbursed foreign debt 

Population (1981): 45,747,000 (end-1981): $15.5bn 

TnrWch lir* lies Foreign exchange reserves 
Turkish lire USS ( Janilaiy 1982 ) : $l_28bn 

GNP (1981): 6,623 bn 60.1m Current account deficit: 


144,745 


Trade 1981 (US$bn): 

Total exports 4.7 
Total imports 9.1 
Industrial exports 2J 
Agricultural exports 2J2 


1980 $3.66bn 

1981 $2.29bn 

Inflation 1981 (annual average): 
- 36.58 per cent 

Currency; £1=TL 268.41 
USS— TL 147.95 


are clear. 'A' Constituent 
Assembly chosen by them is 
now drawing up a new consti- 
tution which, vetted by them, 
wiH be .presented to the Turks 
in a plebiscite. New electoral 
and party laws are to be 
enacted. They have promised 
elections will be held at latest 
by spring 1984. 

Who will implement this con- 
stitution is less dear. In private 
some generals suggest that the 
people will naturally prefer 
those who have run the country 
since 1980 than those who ran 
it into the ground beforehand. 

They would obviously like to 
ensure that, in contrast to what 
happened after the 1960 coup, 
there will be no return of the 
politicians they ousted. Indeed, 
former Prime Ministers Suley- 
man Demirel and Bulent Ecevit 
who 4s now in prison, are among 
tbe politicians they say wiM be 
banned from the first new 
parliament But issuing such a 
ban is easier than enforcing It. 

Like many other officers who 
have seized power, they seem 
increasingly aware how hard it 
is to get off the tiger’s back. 
Further, they appear to realise 
that, however hard they seek to 
crush militant unionism, the 
fall in workers’ living standards 
is going to lead to efforts to 
reverse the situation once 
civilian rule is restored. 

Such issues create a 
dilemma at home, and problems 
abroad. The treatment of 
politicians and unionists; the 
extent of torture and the 
seemingly lackadaisical approach 
to punishing officers involved 
in the death of approximately 
SO prisoners so far; the con- 
tinuing use of the death 
penalty; the generals’ growing 
tendency to crack down on the 
centre, non-violent left as 
shown in its recent arrest of 
the Peace Association; the 
prosecution and de facto 
censorship Df newspapers— all 
these have caused the junta 
some awkwardness with its 
West European allies. 

So far this has been most 
marked in bodies such as tbe 
Parliamentary Assembly of tbe 







JpX 



BffiHP 






General Kenan Evren, Head of State: hoping 
to find a new mould for politics 


Council of Europe — which only 
irritate Ankara. Indeed its 
reaction has markedly avoided 
threats of retaliation. Western 
governments have been more 
restrained in their public com- 
ments and the Turkish generals 
accept their position south of 
the Soviet Union means they 
have to act with particular cir- 
cumspection. 

True, their relations with the 
Middle East are flourishing. 
True too, that in public the 
U.S. has stood staunchly beside 
Ankara. But here, too, there 
are limitations, both in how 
much aid the U.S. Congress 
will provide and how far 


contents 


FOREIGN POLICY 
Defence *■ 

Relations with Arab world El 

The Wert upsets the generals III 
Relations with Greece III 


Turkey feels able to risk its 
Moslem links’ by acting, as it 
did in the 1950s. as an outpost 
for the West 

But ultimately the generals 
will be judged by the success 
with which they do themselves 
out of a job. After each of the 
country’s last three major 
economic crises, the armed 
forces have intervened and 
been involved in seeing 
through the ensuing austerity 
programmes. Each Jinie their 
intervention has been tougher. 
And each time the politicians 
bear some responsibility. 
Whether this regime will he 
able to break that unhappy 
mould is a moot point. 


ECONOMY 


Signs of industrial recovery 

IV 

Profile: Polylen 

IV 

Oyak Renauet 

IV 

Kimsan 

IV 

Painful time for public sector IV 

Growth resumes 

Y 

Profile: Mehmet Okumus 

V 

Hanking 

VI 

Profile: Eroi Sabanci 

VI 

Asaf Guneri 

VI 

Agriculture 

VII 

Transit trade 

VII 

Foreign investment 

VIII 

Debt profile 

VIII 

Energy outlook 

IX 

Ataturk dam 

IX 

Workers abroad 

X 

Businessman's guide 

X 

POLITICS 


Old politicians 

XI 

The trials 

XI 

Profile: Ismail Besikci 

XI 

Unions and the Generals 

XIII 

Profile: Nazli Ilicak 

XII 

Ihsan Dogramaci 

XII 

TOURISM 


The industry advances 

XIII 

Carpets 

XM 

SOCIETY 


Village life 

XIV 

Religion 

XIV 

Tough life in shanty town 

XV 

Family planning 

XV 

Exports progress 

XVI 

Contracting industry 

XVI 

Profile: Omer Cavusoglu 

XVI 

Editorial production: 


Arthur Dawson 


Design: Philip Hunt 

OHMS 


In this survey, names have 
been given largely as they 
are written in Turkish. How- 
ever, it has not been possible 
to include the cedillas under 
some letters “c” and “s”. 
These canse the letters to 
sound as “ ch ” and “ sh ” A 


normal Turkish 


is pro- 


nounced tike the British **j”. 


O* 

(dipt 


1) During 19S1, Turkish exports of industrial products rose by: 

□ a io%? ■ n b 35%? - Dc 118%? 


2) In Istanbul’s Covered Market there are: 
□ 3. 4,400 shops? Ob 800 shops? 


□ c 


300 shops? 


3) Turkish contractors are currently working on projects in Libya, Kuwait, 
Jordan, Saudi Arabia and Iraq worth a total of: 

□ a $ 27 milli on? □ b $ 600 million? □ c $12 billion? 

4) If you ask for ~Bir sise Kavakhdere^iii an Izmir restaurant, you will -get: 

i — i Grilled Jamb ' I — I ’U, A bottle of one of ■ I j A table facing 

I I A 22? I | 13 Turkey’s finest wines? I — I C fee sea? 


file sea? 


□ a U D U C 

S)Xn 1981, what proportion of Turkey’s exports went to EEC countries: 

□ elm? □ b 16%? □ C 31.9%? 


6) In April you can spend the morning skiing in the Taurus mountains, 
and the afternoon: ; 


□ a Swimming in 

CL theMeditazzanean. 


□ b 


Wat ching the Bursa 
Sword Dance. 


□ c 


Sailing on 
the Black Sea. 


If it’s your business to do 

■ m. v business with Turkey, try this test 

m Tick the boxes 

* , you think are correct, then 

• . 1 _ look for the answers 

1 at the bottom of the page. 

1 S ill I 1 11 If you don’t get them 

I I III | 1 1 I m all right, don’t worry. 

JL M 111 Ja %s*il Even experts on Turkey 

need a little help now and then. 
And that’s where we at 

^ m ^ Yapi-Kredi Bank can help you. 

^1 I W B. F Our Monthly Economic 

■I I I Letter is a source of useful 

I and accurate information 

W • about the Turkish economy. 

It’s written in English and we’ll be happy to send you 
a copy every month, free of charge. 

We can also offer you several other publications about 
various aspects of Turkish business and law. 

Yapi-Kredi is one of Turkey’s largest private banks, 
with. 591 branches all over the country. 

We can tell you everything you’d expect an important 
bank to know about its home country. And with offices in 
New York, London, Zurich and Frankfurt, we speak your 
language as well as ours. 

Please write to Dr.. Metin Berk, 

Vice President, Yapi-Kredi Bank, 

Korsan Qikmazi l.lstiklal Caddesi, \r|rj|p^[P)7» 
Istanbul-Turkey. Telex 24279 yaum tr. 

Or call YKB at 

™snfr Wl-KREDi BANK 

95, , , TheTuridsh Bank 

London 628 2907. that speaks your language. 













n 



A Turkish Success Story 


Advances in detergent 
technology... in edible- oils and 
fats techniques have put 
Turyag first in Turkey for over 
65 years. We made the first- 
ever washing powder in 
Turkey. The first fabric ■ 
softener. The first liquid 
household cleaner. The first 
margarine. The first industrial 
edible fats. What gave us the 


lead? Our pioneering spirit. 
Our constant research. Our 
emphasis on quality underlined 
by first-class service. Our 
determination to be ahead-ond 
stay ahead. 

Now with our policy of 
development and expansion 
into new markets, many 
Turyag achievements are being 
exported to many parts of the 


world From household 
' products right to the washing 
and cleaning materials for 
institutional use. 

Tuirag’s Jong experience and 
marketing know-how, high 
technology allied to quality 
and service have combined to 
create many satisfied clients 
and services for Turyag 
products in overseas markets. 



Tuiyag is a joint stock company with the partnership- 
and also, know-how and techonological support 
including management responsibility of HENKEL 
GROUP of West Germany, which markets over 8000 
products throughout the world, and YAPI VE KREDI 
BANK, one of the three largest banks in the Turkish 
private sector. 


TURYAG AS. P.O.B. 171 iZMiR-TURKEY Tel: 14 53 20 Tlx: 52383 lizm tr-Cable: Turyag-izmir 


RTS 



ARTIFICIAL AND SYNTHETIC FIBRES INC 


SASA planrs came on stream in 3968 with a polyester production capacity of 5,000 
tons/annum. Within a decade, this capacity has been increased to 42.000 tonsfannum, and an 
expansion project is currently underway to raise the production capacity to 70,000 
tons/annum as polyester polymer, staple fibre, tops and filament yarn. 

In addition, SASA will have a PET-Bottle production capacity of over 100 million 
bottles/annum when its current investment is completed in early 1933. 


SASA, the largest synthetic fibre producer in Turkey, has expanded further with the 
introduction of the DMT (dimethyi-terephtbalate) plant in 1976. The production capacity of 
DMT plant is 60,000 tons/annum, but a relatively minor investment will shortly increase its 
capacity to 120,000 tons/annum. 


Annual sales of SASA currently exceed TL 12 billion. 


SASA products find acceptance for its high quality in international markets such at Europe, 
Middle-East and Far-East. 


The export activity of SASA accounted for XL 23 billion (US $ 19,505,000) of its total annual 
sales in 1981. 


SASA maintains a technological relationship with well-known international companies and 
the resultant expertise is applied to the product of: 


penleit 


POLYESTER FIBRE AND POLYESTER CONTINUOUS FILAMENT YARN 


D.M.T. 


(TUMETHYL-TEREPHTHALATE) 

In parallel with a rapid expansion programme, TL 30 million initial capital in 1966 has been 
increased to 1,155 million and it is fully paid. 

The current total net worth, including accumulated depreciation, of SASA is TL 3.5 billion. 


ADDRESS: TARSUS - 20436, PJQ& 371 ADANA. CABLE: 


Financial Timas. Monday -May .12 .1982 


TURKEY II 


FOREIGN POLICY 


o 





Ankara’s importance 
to the West has been 
underlined by Poland 
and Afghanistan. Yet, 
as these two pages show, 
the country has trouble 
with its allies — as well 
as with its potential 
enemies. The Iran-Iraq 
war casts a slight 
shadow over developing 
links with the Middle 
East 


defence a priority 


T. E. LAWRENCE’S famous 
encomium on the Turkish 
soldiers he occasionally tried 
to kill, tough men hardened by 
life in Anatolian villages and 
easy to discipline, is held, to 
be as true in 1982 as it was 
in 1916. 

Any discussion of the defence 
of Turkey should begin with the 
quality of its private soldiers, 
even though their most recent 
major, action, in Cyprus in 
1974, showed no spectacular 
brilliance and they are just as 
likely nowadays to be con- 
scripted from the wretched 
slums of Ankara as the haggard 
villages of Anatolia. 

The Turkish armed forces are 
die largest in Europe after the 
Soviet Union and amount to 
the best pm of 600.000 men, 
including land forces of more 
than 470,000. Turkey has been 
a member of Nato since 1952 
and shows no sign of real dis- 
satisfaction with its exposed 
position on the alliance's south- 
eastern flank. 

The country* enjoys a strong 
military tradition and the 
armed forces are a respected 
force in society despite, and 
partly owing to, their tendency 
to take over the Government 
of the country every 10 years 
or so. With defence spending 
now running at about 20 per 
cent of national Government 
expenditure, the armed services 
cannot justifiably complain at 
their share of an albeit meagre 
cake. 

Their chief disabilities are 
two. First, the bulk of the 
equipment in service is of 
Korean War vintage. The 
partial U.S. arms embargo from 
1975-78, imposed in response to 
the Cyprus action, and the 
economic crisis of the late 
1970s hindered attempts to re- 
equip. 


The vista of Turiash-snade 
ordnance in front of the mili- 
tary museum in Istanbul 
embodies a tradition of five 
centuries but Turkish manufac- 
ture can only meet needs for 
warship hulls, mortars, and light 
arms and ammunition. Last 
month the U.S. -Turkish high- 
level joint defence group was 
stating the obvious when it 
was announced in Ankara that 
the modernisation of the 
Turkish armed forces was a 
“priority objective." 

There are particular defici- 
encies in armour, anti-tank 
weaponry, aircraft of every sort, 
and heavy artillery. There 


appears to be no equipment to 
with 


non- 


meet an attack 
conventional weapons. 

Second, all but around 80,000 
men in the services are con- 
scripts usually serving 20 
month, although a Turkish wor- 
ker overseas can buy a reduc- 
tion to a couple of months with 
hard currency. The result is that 
an immense proportion of the 
military's resources is devoted 
to training, some of it rudimen- 
tary indeed. 


Suspicion 


Whether these are severe dis- 
abilities depends on what the 
Turkish armed forces are held 
to be for. Given the deep- 
seated mutual suspicion between 
Turkey and the Soviet Union, 
the Nato mission is easily 
stated. It is to confront Soviet 
aggression in eastern Turkey, 
to withstand Warsaw Pact 
action through Bulgaria and 
into eastern Thrace, and to 
guard the Mediterranean 
approaches' from the Black Sea. 

Deployment reflects this mis- 
sion. 'Die largest and best 
equipped of Turkey’s four full 
armies is the first in European 
Turkey. Its reinforcement or 
evacuation are presumably the 
reason for Turkey’s relative 
wealth in landing craft, which 
causes occasional hysteria in 
Greece. 

The Second Army is based in 
the south-east— and the third in 
eastern Turkey, where the sol- 
diers seem content to serve in< 
conditions and with equipment 
that would stretch another Euro- 
pean army. The army of the 
Aegean, tactlessly named as it 
is. has two full strength bri- 
gades but is largely devoted to 


training. 

The navy, equipped with a 
mixture of largely used U.S. and 
new -West German warships, is 
something, of a poor relation. 
Soviet military use of the straits 
into the Aegean is regulated by 
the Montreux Convention, al- 
though the passage in 1976 of 
the Black Sea-built Kiev, billed 
by the Soviet navy as an anti- 
submarine cruiser (after a 
British precedent) but regarded 
in Nato as an aircraft carrier 
outlawed by the Treaty, would 
suggest Turkey’s ultimate power- 
lessness in. the matter. 

Turks also like to point out 
that the Soviet Union has 
stationed at least 15 divisions 
facing Turkey, which would be 
important for no other reason 
than the current belief that 
Moscow will need 400,000 men 
to be comfortable in Afghani? 
stan. They also point to the 
early warning facilities they 
provide after the closing of U.S. 
stations in Iran and the action 
Turkey would be bound to take 
on the flank of a Soviet push 
into Iran. 

In addition, Turkey stations 
some .15,000-20,000 men in 
Cyprus, although Ankara seems 
content with the once and for 
all advantage it gained in 1974. 

Militarily, most Turkish 
officers would consider this 
quite enough but there is clear 
U.S. interest in some form of 
Turkish role in the event of a 
crisis outside the Nato area, in 
other words the Gulf. 

The question whether Turkey 
would provide facilities or pre- 
positioning for a U.S. rapid de- 
ployment force (RDF). Tins 
would appear to be more a 
subject for general debate 
than a direct U.S. approach to 
Turkey. 

At present- it is safe to say 
that the Turkish armed sendees 
are flattered, see some advan- 
tage (in terms of equipment) 
in leaving the question opeD,. 
but do not wish to damage 
economic relations with the 
Arab Gulf states whose attitude 
to the RDF is equivocal in the 
extreme. “In the event of crisis 
in the Gulf, we would not sit 
still," said one Turkish expert 
“But we do not want the matter 
discussed now." But they are 
reluctant to take on * new 
responsibilities. 

Does all this amount to deter- 
rent in the Nato context? One 


frightening possibility Is that 
Turkey will feel obliged to dose 
the straits— ^as the Convention 
permits— at- a time- of war 
and this could force the Soviet 
Union to act In these condi- 
tions, it is generally accepted 
that Turkey would not be aHe 
to hold back even conventional 
forces for more than a few 
weeks, although eastern Turkey 
might later provide ideal condi- 
tions for mischief on the 
Afghan pattern. 

Much of the time of the U.S.- 
Turidsh group, whic/h was set up 
last December is taken up with 
Turkey’s request for 293 new , 
combat aircraft, for its two tac- • 
tical air forces— to be manu- 
factured in the country. 

British and French interest ' 
in the project has quite 
evaporated now it appears that 
tile foreign partner will have to • 
put up at least 98 per cent of 
the cost 

US. officials do not expect 
the project to materialise in 
tbe foreseeable future although . 
officials of Northrop, for one. 1 
are examining financing possi- 
bilities from within Turkey. 


Anxious 


Both U.S. and West German 
officials agree that these pro- 
grammes will only help Turkey 
stand ' still and the West 
Germans are somewhat anxious 
that the whole pattern of 
German aid could be disrupted 
by the Bundestag’s attitude 
to the military government’s 
handling of foreign politicians 
and trades unionists. 

Any visitor to a place such 
as the Kurdish town of 
Siverek. in south-east Turkey, 
where MPs almost outnumber 
residents, will note that the 
armed officers have a crucial 
function in keeping the- peace 
at home in addition to the 
gendarme, itself an important 
arm of some 125,000 men. 

Since the army also sees 
itself as the prime instrument 
for inculcating Kemalist notions, 
the Turkish language, reading 
and writing, the rudiments of 
family planning and the out- 
side world to Lawrence's 
villager, then Turkey’s Nato 
partners cannot expect a real 
improvement on the present 
bodged job. 


James Buchan 


Ambivalent attitude to Arabs 



TURKEY'S relations with the 
Arab wortd and Iran have been 
growing apace for some years. 
Nevertheless, at bean they 
remain ambivalent. In recent 
times, economic benefits have 
undoubtedly been the main 
reason for closer ties, and 
Turkey has done exceedingly 
well out of these. There is a 
growing impression of organi- 
sation in the area, fitting in 
with the implementation of 
national economic policies. 

But politically, although 
there has been a marked shift 
towards Arab views on tbe 
Middle East, there is 
uncertainty. Earlier this year 
in Bursa. General Kenan 
Evren. inadvertantly drew 
attention to the underlying 
dichotomy, saying: “Turkey is 
at once a European and Middle 
East country.’’ • 

Then in April Mr liter Turk- 
men, the Foreign Minister, 
prompted by Israeli actions in 
the Gaza Strip and West Bank 
and the recent shooting incident 
at the Dome of the Rock in 
Jerusalem talked officially of the 
fact that “ the Middle East prob- 
lem can only be solved with the 
restoration of ail the inalien- 
able rights of the Palestinian 
people, including their rights 
to establish their own state in 
their homeland." But Turkey 
abstained from vetoing Israel’s 
virtual annexation of the Golan 
Heights — Syrian territory 
occupied by Israel in 1967. 

Politics over the years may 
have been confused — and still 
are — but latterly the economic 
imperatives have become domi- 
nant. 


a vital route for goods in and 
oil out of Iraq. 

The 150,000 or so Turkish 
workers in the Middle East pro- 
vide through their remittances 
another important source of in- 
come. Turkish contractors con- 
tinue to thrive, although iron- 
ically they are beginning to be 
hit by the effects of falling oil 
prices, which in its own mirror- 
image way helps Turkey’s cur 
rent account balance. Libya, 
for example, is pressing 1o have 
Turkish construction work paid 
for in oil. 

Arab banking resources are 
being tapped. Last August, for 
the first time, Turkey raised a 
syndicated loan of SlOOm 
for export pre-financing from 
a group of Arab banks led by 
the Libyan Arab Bank. The 
Islamic Development Bank has 
been providing loans since 
March 1980. Arab investment 
is actively sought 


in its direct support of the 
Palestinians. 


The rise in oil prices after 
the 1973 Arab-Israeli war was 
undoubtedly a key influence on 
relations. 


Political tics 


Confused 


To some extent, the army’s 
coming to power in September 
1980 and its quashing of civil 
strife meant that it had more 
concern for domestic rather 
than foreign issues, even those 
affecting immediate neighbours. 
However, mainly under the- 
pressure of economic interests. 
Turkey’s Middle East policy has 
picked up and broadly main- 
tained its skill in avoiding being 
drawn into taking sides in local 
Arab disputes. Indeed, in Taif, 
Saudi Arabia. at at) Islamic sum- 
mit. attended' for the first time 
by Turkey at prime ministerial 
level, Mr Bulend Ulusu was 
asked to participate in a peace- 
seeking mediating ' team — un- 
successful as it turned out — in 
the war between Iran and Iraq. 

Above all it is business which 
has been booming. Part of this 
stems from Turkey being un- 
able to compete within the 
EEC, either directly or because 
of tariff barriers. Exports to 
the Middle East are dramatic- 
ally up, and some aid is coming 
in— Saudi Arabia, for example, 
has provided $400m in untied 
project loans since 1980. 
Transit traffic has become a 
useful contributor to balance of 
payments earnings. Since Syria 
closed its borders to any goods 
for Iraq, Turkey has become 


Turkey’s political ties - with 
the Arabs have in modern times 
passed through various stages 
and stresses. As time has 
passed, the Arabs have broadly 
come to terms with Turkey’s 
membership of Nato, its rela- 
tions with Israel (eased slightly 
by Egypt’s Camp David accords 
and peace treaty), and its 
being, as a result of Ata lurk’s 
reforms, a secular Moslem 
state. In longer historical per- 
spective, the different phases of 
Turkey’s relations with the 
Middle East are clearly identi- 
fiable. 

The first phase, reflected the 
mutual hostility and suspicion 
of both sides as the Ottomans 
attempted to hold onto their 
crumbling empire. With the 
emergence of Ataturk after 
World War One, Turkey turned 
more inwards. As the state 
was secularised and “ western- 
ised 3 ’ the Arabs were largely 
ignored- . ... 

The 1950s and 1960s saw per- 
haps the period of Turkey’s 
greatest alienation from the 
Arabs. 

Partly under the changing 
nature of relations with the 
United States and Nato. Turkish 
attitudes towards the Arabs 
began to change in the mid- 
1960s. The 1967 Arab-Israeli 
war gradually induced new atti- 
tudes towards Israel and aware- 
ness of the plight of the 
Palestinians. 

Today. Turkey is the first 
member of Nato to have what 
amounts to diplomatic relations 
—since 1979— with the PLO. On 
the other side of the coin, in 
spite of being one of the first 
countries to recognise Israel, 
rotations ‘ have been down- 
graded. 

On the Israel-Egypt agree- 
ments. Turkey has been 
cautious, welcoming them on 
the one hand, to the extent that 
Jordan might join in, but also 
supporting the EEC Venice 
deda ration rwiuch is 'outspoken 


Transit traffic 

The combination of Turkey's 
fortunate geographical position 
and the Iran-Iraq war has 
boosted income from transit 
traffic. The number of TIR 
trailers passing through have 
risen from over 112,000 in 
1980 to more than 204,000 in 
1951. According to Mr Umut 
Arik, who directs economic 
affairs in the Foreign Ministry, 
Turkey’s direct earnings, in- 
cluding rail and sea links, 
amount to $400m. As Mr 
Osman Shikiar, governor of the 
Central Bank has said: “Today, 
Mersin harbour is full of 
goods to be transported to the 
Middle East, and these are 
carried by Turkish porters." 

Pertiaps the most sustainable 
aspect of Turkeys relations 
with the Arab world and Iran 
is trade. Armed with a more 
outward looking policy, its ex- 
porters should be able to offset 
tbe cost of oil imports with 
agricultural and industrial 
products. In 1982. the Middle 


East and North Africa overtook 
the EEC as Turkey’s main trad- 
ing partner. 

Mr Kocman in April main- 
tained that this area was taking 
half of Turkey's exports, and 
Mr Arik, who put Iran and 
Iraq’s imports at $4 30m and 
S540m respectively, hopes that 
each market will be worth $lbn 
in 1983. 


More importantly, Turkey has 
been probing further afield. This 
applies particularly to the Gulf, 
where trade, Saudi Arabia 
aside, has risen front S55m 
in 1980 to $1.5bn. General 
Evren visited Kuwait last March, 
and its ruler, in the previous 
September, was the first Gulf 
head of state to visit Turkey. 
Contacts have been made with 
Algeria, and last month Tunisia 
held a special week in Ankara. 

These economic links may sur- 
vive because of the require- 
ments of both sides, but poli- 
tically it would be an exaggera- 
tion to go along with the poet 
Mehmer Akif, who in J913 
wrote "the Turk cannot Live 
without the Arab. Who says he 
can is mad. For the Arab, the 
Turk is his right eye and his 
right hand,” 


Anthony McDermott 


NUROL’S ACTIVITIES 


Building and Housing Projects 

Irrigation and Drainage Projects 

Infrastructure Facilities and Treatment Plants 

Highway, Railway and Tunnel Constructions 

Dam and Hydroelectric Power Plants 

Turnkey Industrial Plants 

(Civil Works, manufacturing and erection) 



NUROI/S ACTIVITY ABROAD 


— Saudi Arabia Yanbu Industrial City Housing 
Projects 


nural 


CONSTRUCTION. AND TRADING CO. 
Gelincifc Sofcak 6/2-3 Kavakliderc 
Ankara — Turkey 
Tel: 28U25 (5 lines) 

Telex: 42821 neoc, 42094 arras ' 


v 


y 







ill 





ty 


Financial ' Times Monday May 17 1982 ' 

TURKEY in 





POLITICS 



hurt by Western critics 


TURKISH GENERALS and 
diplomats are impatient. They 
have stabilised the south-east 
flank of Nato, yet AJJiance 
members show them only 
limited appreciation. Thev 
spend hours telling visitors of 
their commitment to restoring 
parliamentary democracy bv 
spring • 1984—then many o*f 
- these same visitors return home 
and issue reports, castigating 
them. 

They hear West cm leaders 
condemn terrorism, but they see 
little done against Armenian 
gunmen who' have shot .down 
over £0 of their diplomats. Now 
The same Western countries 
who laud their economic pro- 
grammes have been refusing to 
hold a formed pledging session 
to provide them with aid 

'‘How can those who criticise 
us believe' that economic 
destabilisation and reducing 
our relations with Europe will 
help restore democracy,” asks 
Mr liter Turkmen, the career 
diplomat whom the generals 
made, their Foreign Minister. 

Certainly the gulf is large. 
On the one hand is a ruling 
Turkish class steeped in 
memories of past imperial 
grandeur and inherently 
resentful o£ interfering " 
foreigners. On the other are 
Western Europeans continually 
told how Turkey has hitched its 
wagon to the West and con- 
sequently expecting some 
recognition oi liberal values. 

Some of tite more impatient 
young Turks in Ankara would 
have Turkey turn its back on 
Western Europe. Indeed, six 
months ago it almost seemed as 
if the U.S. was prepared to 
step in to All Europe's place. 
But. despite recent high-level 
exchanges, in private U.S. 
officials make it clear this is not - 
a realistic option. 

There is a limit to the aid the 
U.S. can provide. The U.S. has 
already been supplying over 
one-third of the annual SI bn 
economic aid which Western 
countries have pledged and 
U.S. funds are tight. Further, 
Washington has begun dis- 
creetly to hum Europe’s tune 
that a better human rights 
record will help Turkey’s 
friends to help it. 

Another alternative which 
some armchair strategists like 
to propose is that Turkey might 
play its “Moslem card." Such 
suggestions, derive from the 
country being both now an 
active member of the Islamic 
Conference. Around 40 per cent 
of both its exports and im- 
ports are now traded with the 
Middle East and North Africa. 

It has $12bn worth of contracts 


in the area. It is Increasingly 
losing its better brains to the 
area. Countries like Saudi 
Arabia . are providing valuable 
aid. 

Turkish officials make it clear 
that the country’s opening to 
pie Middle East is never 
intended as an alternative to 
its Western ties — Nato, the 
Council' of Europe, and. as an 
Associate Member, of the EEC. 
Instead, as one 'senior official 
puts it “Far from being In 
competition with West Europe 
our activities in the Middle 
East add another dimension to. 
the West- and help extend its 
influence. ” 

The result is that, like: it or 
not, Turkey’s leaders . accept 
they have to maintain a work- 
ing relationship with Europe. It 
is thus with petulance rather 
than threats that they have 
responded lo public Western 
criticism of their regime. 

Among the harshest criticisms 
was the resolution adopted by 
by the Parliamentary Assembly 
of the Council of Europe on 
January 2S. This Paired the pos- 
sibility that some states would 
take Turkey before the Euro- 
pean Commission of Human 


Rights. It also raised most of 
the other main accusations 
against the regime; its treat- 
ment of politicians and closing 
of political parties; Its suppres- 
sion of union activities and 
arrest of unionists; the extent 
of torture — Amnesty Interna- 
tional believes over SO people 
have died while under arrest; 
and concern over the restoration 
of democratic rights. 

. Reluctant friends 

Yet the speech on the Council 
of Europe resolution bv General 
Kenan Evren. the Head of 
State, was notable for what it 
did not say. Wounded pride and 
dignity were evident Any 
suggestion of hasty reprisals was 
not. Instead the approach has 
become one of dividing critics' 
into friends and enemies — and 
discounting the latter while 
relying on the former to help 
maintain Turkey’s links with 
the West. So far this approach 
has worked well. Countries 
like Britain are extremely 
reluctant to see any of Turkey's 
organic ties with Europe 
broken. 

Every now and then the 


Dutch and Scandinavian gov- 
ermnents seem poised to be- 
come' more active, but so far 
have not. Instead it is one of 
the curiosities of the present 
that despite concern over Tur- 
key being overtaken by other 
international issues, even Tur- 
key’s friends are now reluctant 
openly to press its cause 

One instance of this Is seen 
in the EEC. Here the local 
press has been seeking connec- 
tions between the EEC's 
measures against " dumped ’’ 
Turkish cotton and Turkish 
shirt and T-shirt exports. At one 
point, Mr Leo Tindemans, the 
Belgian Foreign Minister, even 
hinted that a solution to the 
political problems with Turkey 
might help a solution of such 
economic disputes. But in 
general it appears that the EEC 
is doing no more against Turkey 
in the Reid of trade than it does 
with other countries. 

Far more significant is the 
EEC's continuing failure to act 
on the Fourth Financial Proto- 
wri which would provide Turkey 
with around S600m of economic 
aid over a five-year period. This 
protocol has now been delayed 
for six months. Such is the 


mood in Europe that it was not 
even raised at tite last meeting 
of European heads of govern- 
ment. 

A second instance of reluc- 
ance to side with Turkey Is, of 
course, the delay in holding the 
aid pledging session of members 
of the Paris-based Organisation 
for Economic Co-operation and 
Development. The ?lbn pro- 
vided by last year’s session is 
equivalent to about 40 pgr cent 
of the country's financing gap 
this year. More aid will be 
needed next year. 

The main countries can still 
be expected to find some method 
of assisting their ally but are 
not keen to press the issue 
publicly. They fear some coun- 
tries would refuse to join in— 
even if some of Turkeys critics 
say they would be happy to slip 
aid through in the form of 
export credits rather than more 
visibly through programme or 
project credits. 

The net result of all this is 
that Turkey finds itself often 
obliged to act more passively 
than it would like. For instance, 
when French ministers appear 
to condone Armenian activities 



-—perhaps the matter causing 
greatest fury in Ankara — it is 
hard for the regime to 
retaliate. . 

All this is a strange situation 
for a country with Turkey's 
geo-strategic importance. It sits 
across Soviet routes south to 
the Middle East It ties down 
up to 35 Soviet divisions. It 
“ pinches the giant’s nostrils.” 
as Churchill put it, by controll- 
ing the Soviet exits from the 
Black Sea. Yet in many ways 
it is its allies rather than its 
enemies which now tie its 
hands. Adding to the need for 


Ankar a to act circumspectly are 
the anxieties caused by all its 
seven neighbours: 

• Iran and Iraq continue at 
war — and have restless Kurdish 
minorities. 

• Syria is again proving awk- 
ward by lining up against 
Iraq. 

• Greece has a new tough- 
talking government. 

• Bulgaria b as yet to prove its 
commitment to stopping arms 
smuggling. 

• The Soviet Union is becom- 
ing restless at Turkey's appar- 


ently increased sensitivity to 
U.S. concerns. Ankara may 
even be weakening its opposi- 
tion to allowing its military 
facilities to be used for “ out of 
area" operations by Nato. 

What can Turkey do? The I 
only answer at present in 
Ankara is that heard for the 
past few years, of opening to • 
its neighbours while remaining 
linked to the West. The link, * 
however, is liable to keep i 
chafing at both ends. 


David Tonge 


Uneasy balance reached in conflict with Greece 


XT COUU> have been much . 
worse. For the past six 
months Nato has been cross- 
ing its fingers and hoping 
Greece and Turkey would 
come to terms with each 
other. Instead, suspicion 
between the two putative 
allies has bristled. 

Dr Andreas Papandreou, 
the Greek Prime Minister 
since October, continues to 
talk of “the threat from an 
allied country, Turkey, ' 
against the national. Inalien- 
able sovereign rights of on r 
country In the Aegean and 
Thrace." 

In Ankara, Mr liter Turk- 
men, Foreign Minister, speak- 
ing In his official residence 
overlooking the city, says: 
“The most dangerous thing 
for the Greeks would be to 
translate their words into 
action. In particular with 
regards to the Aegean. Wo 
hope the Greek government 
clearly understands that a ' 
conflict would be fatal. M 

Yet to their • allies' relief ■ 
an uneasy balance does seems 
to hare been reached. In 
January both sides seemed to 
be heading for a clash. Today 


Athens seems well aware of 
the dangers involved, while 
Anakara appears to prefer 
disdain to attaek. 

“Papandreou is a politician. 
Most of the things he says 
are for domestic consump- 
tion,” Is bow Mr Turkmen 
puts it. 

. True, the Aegean nexus 
causes fuss for Nato. In 
December Greek demands 
for guarantees against Turkey 
led to the Alliance's ministers 
for the first time having to 
end a meeting without a com- 
munique. This month, prob- 
lems over wbo should com- 
mand and control Nato forces 
during the exercise Distant 
Dram ’82 caused Greece to 
refuse to allow its troops or 
its seas to be used. Further, 
there has been no progress 
in establishing a Nato com- 
mand structure in the Aegean. 

But the degree of provoca- 
tion Toy both sides has been 
kept to traditional limits and 
in Ankara the main problem 
appears to be one of frustra- 
tion. Why does Dr 
Papandreou appear to give 
one message In public and 
another in private? Does he 


recognise the 1976 Berne 
Agreement between the two 
countries, designed to avoid 
provocative acts in the 
Aegean? 

Does he plan to declare a 
12-mile limit for Greek terri- 
torial waters, a move whieh 
would block Turkish ace ess 
to world seas and be con- 
sidered a casus belli? Why 
docs he refuse a formal 
dialogue between the two 
countries? What are his 
overall policies? 

These are the questions the 
visitor hears in Ankara— 
and . there are no easy 
answers. 

The underlying issues go 
back to at least the post-war 
period when the handing to 
Greece of the Dodecanese 
Islands off Turkey’s coasts 
upset the careful balance 
established by the Treaty of 
Lausanne in 1923. 

They involve not Just the 
territorial waters of the 
islands — and here Turkey 
voted against the United 
Nations Law of the Sea 
which gives considerable 
rights to islands— hnt also 
the air space and continental 


shelf in the Aegean. 

The Greeks fear that the 
Turks cherish the islands and 
wish to surround them with 
zones of exclusive Turkish 
Influence so that they will 
eventually come under 
Turkish sway. The Turks 
insist they have no such aim 
but are merely determined 
that the Greeks do not use 
their rights over the islands 
to undermine Turkey's 
legitimate interests in the 
Aegean. 

Religion 

The fundamental issue is 
that of trust; and when trust 
is as lacking, as at present, 
it is hardly surprising that 
other issues should come up 
too. Hie latest to surface is 
that of the religious founda- 
tions. 

When (he Greeks explain 
this it appears an issue which 
should stir the whole of the 
West. For after years of 
pressure on the pitifully 
diminished (it has now 
shrunk from 107,000 to 
5,0001 and ageing Greek com- 
munity of Istanbul, the 
foundations which buttress 


the Oecumenical Patriarchate 
appear under threat 

Ultimately this could cause 
the spiritual head of the 
world Orthodoxy to leave 
Istanbul. In turn this might 
open the way for Pimen/the 
Patriarch of Moscow to take 
over as spiritual leader of 
. the Orthodox Christianity, 
and thus give an opening to 
the Kremlin. 

This particular issue has 
come to a head since a court 
decision in northern Greece 
affecting the state land used 
by the local Moslem com- 
munity. Many of the 100,000 
Moslems have expressed con- 
cern and the Tnrks are now 
threatening legislation 
designed to allow them to 
take ever foundations. 

In their view they are only 
responding to existing legis- 
lation on the other side of the 
Aegean. But that is what the 
Greeks said when they intro- 
duced their own legislation a 
year ago. 

Just as worsening relations 
between Athens and Ankara 
have begun to blight the life 
of the minorities in both 
countries, so it has cast its 


shadow over the Cyprus dis- 
pute. 

Yet here its effect has been 
less. Admittedly, It has taken 
some time for the new 
Government in Athens to co- 
ordinate its approach with 
that of President Spiros 
Kyprianou. Even today 
strains can emerge over the 
relative weight to be given 
to ” Internationalising ” the 
problem (tbe approach that 
Dr Papandreou finds more 
congenial) and continuing 
the intereommunal talks — 
which for the time being 
President Kyprianou believes 
is necessary. 

Last August tbe Turkish 
side slightly broke the dead- 
lock in the negotiations 
between the two communities 
by finally spelling out hour 
much of the island it wished 
to keep. Its proposals 
involved retaining around 
32. 4 per cent of the 38.6 per 
cent of the island which It 
seized in 1974. 

(Believing that Dr Papanr 
ttreou had a chance of win- 
ning the forthcoming Greek 
elections. It preferred to 
make Its proposals before he 


did so rather than afterwards 
when they would have 
seemed a response to him.) 

Now .the Turkish side has 
tacitly ‘accepted the United 
Nations “Evaluation" of both 
sides' proposals which would 
give the Greek Cypriots at 
least 70 per cent of the island 
as a start. In Ankara the 
Turks welcome the recent 
decision to speed up the pace 
of the interconununaJ talks. 

But on most issues the two 
sides are far apart. The fact 
that even now the Greek 
Cypriot Presidential elections 
due next February are begin- 
ning to dominate Greek 
thinking is deeply disturbing 
to the Turkish officials 
involved. They argue that if 
Cyprus i$ ever to he solved 
it should he In the two years 
before civilian rule is 
restored in Turkey and the 
issue becomes a matter of 
party politics. 

The present state of Greek* 
Turkish relations makes 
early developments here 
seem somewhat unlikely. 

D.T. 


r 


S 

% : -i 

i - 



U'* . 


Interbank, Turkey 


Statement of 1981 Activities 


BALANCE SHEET - DECEMBER 31, 1981 


( Currency - Thousands of Turkish Lira ) 


STATEMENT OF INCOME 

FOR THE YEAR ENDED DECEMBER 31, 1981 

( Currency - Thousands of Turkish Lira )' 


ASSETS 


LIABILITIES AND SHAREHOLDERS' 

EQUITY 

CASH ANO DUE FROM-BANKS 

9.228.280- 

DEPOSITS: 


RESERVE DEPOSITS AT CENTRAL BANK 

1482,199 



BILLS DISCOUNTED 

189.000 


9,049,897 

4,259,492 

INVESTMENTS 

74,000 

Interbank 

LOANS: 


Savings and other 

378,995 

Short-term 

15,000,677 

Time deposits- 

Medium and long -mm 

184,614 

Savings and certificates of deposits 

8,314678 

15,185,291 

Interbank 

307,563 

Less- Allowance for possible losses 

00,173) 

BORROWED FUNDS FROM CENTRAL BANK 

22.310. 615 

15,175,118 

989.359 

BANK PREMISES, FURNTTURE AND FIXTURES, 

PAYMENT ORDERS AT CENTRAL BANK 


127,531 

ACCRUED INTEREST 

629,341 

net 

IMPORT ADVANCES TAKEN 

437949 

CENTRAL BANK IMPORTS AND OTHER BLOCKED 


TAXATION: 

ACCOUNTS 

1,283.968 

On income 


ACCRUED INCOME AND PREPAID AMOUNTS 

550,985 

Other 

222,794 



OTHER LIABILITIES 

1.681.006 



Total /fabffrtfes 

SHAREHOLDERS' EQUITY: 

27.340.399 



Shore capital (Natal) 

500,000 



Retained oarmngs 

250.691 



Total shareholders' equity 

CONTINGENCIES AND COMMITMENTS {Note 2) 

750,691 


J28^_081jO9(3 


28, 091.090 


• V 


(Natal) SHAM CAPITAL: 

On January 23. 1982. an extraordinary ahoretaJdwf 
meeting was held and a decision made to increase 
the Bank's share capital to TL 4.000.000.000. 

As of March 17. 1982. the Bank had received cash in payment 
' fat the lust capital call amounting to TL 875.000.000 
thereby increasing the paid in share capital to 
TL U75,OOO.OOa 


t Note 2) CONTINGENCIES AND COMMITMENTS: 

As or December 31. 1981. the Bank had the following 
contingencies and commhinents: 

NATURE AMOUNT 

Bank letters of guarantee issued by the Bank 10,558.576 
Notaa endorsed io the Central Bank 1.018.599 

Payment commiimams to foreign banka arising 

bom acceptance credits 840891 


INTEREST INCOME: 

Interest on loans 
Fees and commissions on loans 
Interest on balances due from banks 
Interest rat reserve deposits ar Central Bank 
Interest on government and savings bonds 
Other interest Income 

INTEREST EXPENSE; 

Interest on time and savings deposits 

interest on interbank deposits 

Interest on borrowed funds from Central Bank 

Interest on commercial deposits 

Other interest expense 


Net interest income 
PROVISION FOR LOAN LOSSES 
Net interest income after 
prevision for [pan buses 
.OTHER INCOME: 

Income on foreign exchange dealings 
Income from banking services 
Dividends 
Miscellaneous 

OTHER EXPENSE: 

Salaries and employee benefits 
Administration expense 
Taxes otter than on incoma 
Depreciation 

Income before retirement pay, 
bonuses and taxation 
PROVISION FOR RETIREMENT PAY 
BONUSES 

Income before taxation charge 
TAXATION CHARGE 
Net income 


977.S37 
2D4.2D1 
134.579 
J 2 7,866 
6.465 
3.039 
1.453.837 

835,956 

53.431 

95,322 

3,335 

87.556 

1,075,600 

37B.237 

1.773 

376,464 . 

386,263 

218.061 

JTmw 

lS.444 

622,273 

300.853 
165,1 IB 
93,224 
B.396 
567,591 

431,146 
44,000 
49,009 
338.1 37 
179,846 
158.291 



INTERBANK 

INTERNATIONAL BANK FOR INDUSTRY AND COMMERCE 


ULUSL4RARASI ENDOSTRI YE TtCARET BANKAS A5. 
Bankahtr Cad. Istanbul-TURKEY TeL*450030 Tdex:24320 Ibfia tr 




IV 


Financial Times Monday May l^i§82 


TURKEY IV 



Signs of industrial recovery 


Two aspects of industry. 
.Tames Buchan looks at 
the private sector; 
the state sector's 
struggle to be more 
competitive is examined 
by William Dawkins 


INDUSTRY IN Turkey 
presents at first a somewhat 
contusing picture. While 
capacity use remains at the 
dismal level of around 55 per 
cent and real interest rates 
of up to 40 per cent are in 
force, dividend payments of 
60-70 per cent have become 
so common that they excite 
no comment. 

The constant in any dis- 
cussion of Turkish industry 
is the Government’s stabilisa- 
tion programme, launched at 
the beginning of 1980 under 
the control of Mr Torgnt Ozal, 
now Deputy Prime Minister, 


and pursued with rather 
greater vigour since the 
imposition of military rule In 
September of that year. 

In response to attempts to 
curb deficit spending and the 
money supply, domestic 
demand geared to inflationary 
expectations contracted 

sharply, while a series of 
incentives and tax rebates 
have encouraged exports. The 
overall result has been a 
shrinking of the domestic 
economy, but the effect has 
varied widely according to 
sector and size or company, as 
the following three case 


studies from the industrial 
zone at Bursa suggest 

In general, those private 
sector companies geared to 
consumer demand did vezy 
badly last year and are not 
greatly optimistic for 1982. 
Those concerns already 
exporting, and those wbo 
immediately joined them, 
have done better. 

In recent months, the 
Government's grip on money 
supply appears to have 
slipped and this is reflected 
in higher rates of inflation. 
The companies noted signs of 
life in the domestic market 


Polylen sets sights 
on export growth 


Oyak Renault aims 
to restore balance 


POLYLEN, a medium-sized 
company. which manufac- 
tures polyester yarn for 
the textile industry, is not doing 
too badly and paid a 60 per 
cent dividend last year. 
Although the six Turkish com- 
panies involved in the business 
cannot meet the industry’s 
demand for yarn, Mr Cahit 
Rustem, the plant manager in 
Bursa, says the company must 
still export to survive and to 
do that it must grow. 

Trebled 

Of its TL 2.6bn turnover last 
year, 36 per cent or $1.3bn was 
generated abroad and the allo- 
cation for exports this year is 
treble that. Exports would be 


impossible without the incen- 
tives. Mr Rustem says, because 
of higher than European pro- 
duction costs. Indeed, the 
company has found increasing 
difficulty in the market it 
opened in Europe and is now 
deriving export revenues with 
an even hand from the two 
parties to the Gulf war. 

Mr Rustem says that quality 
control has improved in 
response to the export challenge 
and he now intends to double 
the yarn capacity. At the time 
of the military takeover, the 
company was taken over mainly 
by the Kutlutas concern, injec- 
ted with overseas construction 
funds, and helped by a tripling 
of capital to TL 450m. 


MR CAN GOKNIL, general 
manager of this French-Turk&h 
passenger car manufacturer, 
should have no reason to curse 
the generals who seized power. 
On that day, September 12. 1980 
bis company was in the middle 
of a six-week strike. Strikes 
were immediately outlawed, and 
the company could resume pro- 
duction of the 1300 cc -Renault 
12 car it has been making in 
Bursa since 1970. 

In fact, the company's situa- 
tion, already bad, deteriorated 
sharply through 198L That 
year it produced a mere 12,700 
units from its 35,000 capacity, 
bad to cut its workforce further 
(to 1,820 from its peak of 



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3,000) and turned in a record 
loss of TL 420m. 

“The buyers’ market turned 
into a depositors' market,” Mr 
Goknil says with a sigh for the 
days before deposit rates 
soared, when people used to 
queue for months to buy his 
product as a hedge against in- 
flation. His own financing costs 
over the two years since the 
start of 1980 have risen by an 
average of 75 per cent and in- 
vestments. financed by foreign 
credits of S25m are proving 
ruinous because of the steady 
devaluation of the Turkish lira. 

As part of its agreement with 
the Government, Oyak Renault 
must export a portion of its 
production — 4,350 cars to 
Egypt and West Africa and 
4£00 engine-gearbox units back 
to France, the whole .worth 
TL 21m last year. Tax rebates 
on these units as a portion of 
production, customs exemption 
on imported components for 
them and interest rates of 
around 29 per cent for export 
production mean that the com- 
pany does not lose money ex- 
porting, Mr Goknil says. 

Otherwise, the situation is 
scarcely promising. The Turk- 
ish private sector is traditionally 
heavily leveraged, but paid up 
capital of only TL 650m was 
proving clearly inadequate. It 
is a virtue of Oyak Renault's 
size that Renault France, Oyak 
(the army pension fund which 
is one of the countzys larger 
financial institutions, and the 
Yapi ve Kredi bank could be 
bullied into a capital increase 
to TL 2 bn. “They had no 
choice.” Mr Goknil says. 

“ Ours was an artificial situa- 
tion,” he says and believes that 
the auto industry (which is pro- 
tected from competitive im- 
ports) can find a place in this 
brave new world. When he says 
that Oyak Renault will come 
back into balance this year, this 
is lareely a recognition of 
necessity. F^rst quarter produc- 
tion or only 2.500 units scarcely 
inspires hope. 

Financing 
gap worries 
Kimsan 

WHILE THE large and medium- 
sized companies could afford to 
approve the new export-oriented 
government policy. Mr Sadik 
Ertok, manager of the Mall Kim- 
san concern, was refreshingly 
frank. “I know nothing of Mr 
Ozal ”, he says. “ Go ask him 
about our problems 

Kimsan makes regener ated 
rubber for use in the tyre 
industry, employs 48 people, is 
dependent entirely on domestic 
demand for automobiles and 
withheld its dividend last year 
for the first time in its 11-year 
life. Although turnover and 
profits have continued to be 
lifted by inflation, amounting to 
TL 45m on TL 110m last year. 
Mr Ertok is now stockpiling half 
his production and is faced with 
a severe financing gap. Attempts 
to persuade 480 shareholders, 
including the Turkish railway 
pension fund, to double the 
capital to TL 40m was a failure, 
because Mr Ertok. unlike Oyak 
Renault, cannot bully. 

Mr Ertok has never borrowed 
and does not wish to start now. 
His chances of survival must 
depend on the truck market, 
which is relatively buoyant 
because of the expansion of the 
overland trade with Iraq, and 
on signs of life in passenger car 
purchases. 


State sector finds path to 
efficiency proves painful 


SUMERBANK, the giant state- 
owned textiles and ba nk i n g con- 
cern, increased its cotton and 
wool production by 25 per cent 
d uring the past year, according 
to Mr Sukru Akguagor, die 
general director; 

At the same time it shed 1,440 
people from its labour force, 
slimming it down to 37,525. 

In spite of this, Mr Akgungor, 
a former head of the State In- 
vestment Bank, and once a 
section bead at the Ministry of 
Finance, is the first to admit 
that there are problems. 

Sumerbank is a microcosm of 
Turkey’s troubled public sector, 
which consists of 35 State Eco- 
nomic Enterprises (SEEs) and 
owns 47 per cent of the 
country’ s in dustry. 

The SEEs have long been 
characterised by political 
patronage, political interfer- 
ence in decision making, in- 
efficient and transient manage- 
ment and over-staffing. A heavy 
reliance on cheap loans from 
the central bank — now sharply 
curbed — an unwieldy invest- 
ment strategy, big losses, and a 
formerly ridiculous pricing 
system ha ve a ll combined to 
make the SEEs a heavy drain 
on state finances. 

But the fact that Mr 
Akgungor is still in his job after 
2$ years indicates that in 
Sumerbank at least, there may 
be a change for the better. 

Short tenure 

Previously, the average 
tenure for an SEE manager was 
less than 10 months, mainly due 
to the fact that his salary was 
as little as half that of his pri- 
vate sector counterpart. To 
improve this, the Government 
last year gave managers salary 
rises of between 60 and 120 
per cent. It is also beginning 
to provide them with contracts 
of up to five years. 

Two years ago Ankara em- 
barked on a campaign intended 
to make the SEEs pay their own 
way. It even seemed ready to 
allow one — Isdemir, the Isken- 
derun iron and steel plant — 
reach the brink of closure to 
prove its point But the outcry 
that could have greeted a col- 
lapse has caused the generals 
to think twice. There are signs 
that the Government's resolve 
is softening. After all the Prime 
Minister of Turkey is still the 
biggest in dustrial employer in 
the West, with about 700,000. 
people working in the SEEs. 

This number is gradually 
shrinking due to a government 
freeze on half of the SEE’s 
vacancies in most sectors. How- 
ever. managers are not allowed 
to dismiss redundant labour. 
Instead, the Government’s policy 
is to shift the less productive 
workers into more productive 
areas. 

An official from ibe State 
Planning Office (SPO) said 
that the Government feared 
social strains would intensify 
without this ban. 

The most important part of 
Ankara's austerity drive was to 
deny the SEEs cheap loans from 
the central bank, except for 
those in the agricultural sector 
responsible for buying far- 
mers' crops. As a result, the 
cost of borrowing for most SEEs 
has risen from around 10 per 
cent to between 50 and 60 per 


cent. Their borrowing from 
the Treasury decreased from 
TL 49.8bn (£184m) in 1980, 
when the measure was intro- 
duced, to TL 22.2bn last year. 

When money was cheaper, 
the SEEs used to shift some of 
their debts onto the private 
sector in the form of unpaid 
arrears to contractors and sup- 
pliers. Tougher credit could 
mean a repeat of this experi- 
ence. 

Another major element in the 
drive to reform the SEEs was 
Ankara’s decision two -years 
ago to allow managers to set 
their own prices. In the case of 
Sumerbank this resulted in 
25 per cent rises for some pro- 
ducts last year. In other SEEs, 
the rises have been as much as 
400 per cent in two. years. 

However, the Government has 
kept the right to decide the 
price of some basic items like 
sugar, coal, petroleum, and 
electricity used by some indus- 
tries and services like metal- 
lurgy and maritime transport. 

But even these have seen 
some hefty increases. 

The extra income from these 
price rises is one reason for a 
decline in the SEE’s net operat- 
ing loss (excluding taxes and 
government subsidies) from 
TL 2S.lbn in 1980 to TL 6-6bn 
last year. In 1979, 12 SEEs 
made a net loss. In 1981 this 
number was reduced to seven 
and the Government expects 
three — fertilisers, railways and 
maritime transport — to make a 
loss totalling TL 47m this year. 

In another attempt to make 
the public sector more efficient, 
the Government is cutting hack 
on tiie massive prestige invest- 
ment projects which have been 
a hall-mark of SEEs in the past. 

Many of these projects have 
been scrapped and Ankara’s 
policy, as decided by a special 
committee set up to reform the 
public sector, is to create no 
more SEEs. Managers have 
been instructed to concentrate 
on improving operating per- 
formance and cutting costs 
rather than on expanding. 

Sumerbank, for example, is 
conducting a major rationalisa- 
tion programme, with the help 
of an 583m loan from the World 
Bank. The plan is to improve 
tr aining and modernise Sumer- 
bank’s 18 cotton plants — 
accounting for about half of Us 
total production. 

However, big investments are 
being continued in key sectors 
like roads, ports, energy, com- 
munications and agricultural 
projects. 

In spite of these measures, 
SEEs remain a heavy burden 
on the Budget. Budgetary 
transfers last year are esti- 
mated at TL238bn, or 3.6 per 
cent of gross national product 
(GNP). compared to 3.3 per 
cent of GNP in 1978. At the 
same time they are contributing 
to inflation, even if less than in 
the past. In 1970 their net 
short term borrowing amounted 
to 9.6 per cent of GNP, in 1980 
to 7.2 per cent and in 1981 to 
4.3 per cent. The forecast for 
1982 is 3.6 per cent 

Most of their spending goes 
on goods and services, while 
investments are the second big- 
gest drain, followed by wages 
and salaries. 

It will be difficult to make 



SEEs really efficient while they, 
are as cushioned from competi- 
tion as under the present sys- 
tem. Apart from . the - state 
monopoly for tobacco and alco- 
hol, SEEs involved in railways, 
postal and communications ser- 
vices, pulp, sugar, tea, the grain 
trade, petrochemicals and coal 
have an ‘ effectively exclusive 
position. 

There is some private sector 
competition for those produc- 
ing steel, lignite and fertiliser. 
SEEs .producing paper and 
cement account for about 20 
per cent and 40 per cent of 
output in their respective 
areas. 

Sale suggested 

One solution which the. 
Government has considered is 
to sell thqm in stages to the 
private sector. But as ah aide 
to Mr Tuxgut Ozal, the deputy 
prime minister in charge of the 
economy put it: “Who would 
want to buy them?” 

Another suggestion put for- 
ward by a Ministry of Finance 
official would he to set concrete 
efficiency targets, have no inter- ' 
ference in their investments, 
issue fewer decrees, and bring 
the whole sector under the 
control of a small national 


enterprise hoard. The Govern- 
ment is' already moving in this 
direction - by ; comparing 
methods in. other industries to 
see where economies can be 
made and planning . to give 
managers more autonomy to 
choose their own sources of 
raw mateciate/ 'asd manning 
levels. 1 

Another solution would be to 
attract foreign investmeni; im- 
porting the management skiffs 
and technology which the SEEs 
were intended to cultivate In 
Turkey when they were set up 
40 years ago, This has. been a 
hard, task, but a protocol agree- 
ment has just been signed 
between Etibank, the public 
mining and banking group and 
Phelps Dutch, a . U.S: copper 
company, for a joint venture in 
an integrated mining, process- 
ing and marketing operation. 

Clearly, the steps taken are 
hi the right direction but much 
remains to be done. “There 
are no magic solutions, but I 
believe we have moved a long 
Way,” says Dr YQthrim Aktork, 
head of the SPO. “At the same 
time, I don’t underestimate the 
problems.” 

The biggest of those prob- 
lems will always be that so long 
as they, are so pro tected from 
competition, the SEEs will 
never become efficient. 


The ethylene plant of Petkim, Turkey’s 
petrochemical complex 




Today the Republic of Turkey is sure and 
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that a major portion of these resources 
makes up a significant poteritialfortourism. 

The Ministry of Tourism and Information 
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domestic and mtematiohal tourism by 
introducing opportunities fear tourism 
investment in Turkey. 

These opportunities include Tourism 
Development Projects on the beautiful and 
popular Aegean and Mediterranean coasts of 
Turkey- 

Find out now about attractive investment 
incentives such as tax exemption; 
empIojTnent of foreign personnel; 
permission for transfers of foreign currency 
etc. 

For detailed information about new 
investment opportunities now available in 
Turkey, please contact .. 

The Turkish Office of 

Tourism and Information (Dept tio), 

49 Conduit Street, London W1R OEP- 
Telephone: 01-734 8681/2 

TURKEY 



Bomsan produces, as you would guess, 

“bora”, i.e. tubes and pipes: 

Water and gas pipes. Industrial tubes. 

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All in ftdl compliance with the international 
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but "Borusan is international. 






al 


Financial. Times Monday May 17 1982 




TURKEY V 


ECONOMY 


aN 


Crucial year for the recovery programme 


TWO YEARS into Turkey's 
economic recovery programme 
and much is going well. Growth 
has resumed, reaching a current 
level of about 4.5 per cent. The 
country’s current account deficit 
has been halved. Inflation has 
been slashed by. two-thirds to an 
annual rate of around 30 per 
cent Short-term stabilisation is 
on course. 

It is all a major change from 
the days when Turkey was 
running helter-skelter towards 
economic disaster. The turn 
round Is largely credited to Mr 
Turgut Ozal, who designed and, 
as Deputy Premier, implements 
the recovery programme. 

The visitor finds him more 
ebullient than ever. His office 
has been redecorated. He 
freely offers the Turkish coffee 
- which the country was long too 
poor to import He paints a 
fa-cure when the Turks, who two 
years ago rail out of lamp bulbs, 
will be exporting video cassette 
recorders. He makes light of the 
problems talked of by Istanbul 
businessmen, worried about by 
others in Ankara, or hinted at 
by official bodies abroad. 

His programme has involved 
a major and continuing devalu- 
ation of the, Turkish lira; a- tax 
reform; limiting wage and 
salary increases; cutting subsi- 
dies and halving the Public 
Sector Borrowing Requirement; 
the lifting qf government con- 
trols over bank interest rates; 
easing the way for foreign 
investors; introducing incen- 
tives .for exporters; removing 
.most price, controls; and 
some tinkering with Turkey’s 
. notorious import barriers. .. 

Concurrent with these 
measures — and in some cases 
the result of them — have been 
a series of critical structural 
changes: 

• Overseas contracting has 
become a boom. area. Turkey's 
contracts in the Middle East 
exceed 8 12 bn— with ail the 
vulnerability to oil 'earnings 
which this implies. 

• Exports doubled in value 
between 1979 and 1981 to reach 
$4.7bn— 39 per cent of them to 
the Middle East and North 
Africa. Exporting has become 
widely accepted as a priority. 

• Industrialists, long-used ,to 
borrowing at negative real 
rates, find themselves having 
to pay up to 4 per cent real 
interest rates. Companies are 
having to dramatically lift their 
equity. 

• New holding companies have 
emerged which group once- 
struggling smaller companies 
and challenge the older indus- 
trial heavyweights. ; : . 

• A major shift from sight to 


TURKISH EXPORTS 



i li’-ff R- 


0 1 [ ir ru 

1978 ’79 ’80 'SI ^ 


time deposits is squeezing bank 
pressure on some of the smaller 
banks. 

• Workers' real wages have fal- 
len sharply, by up to 50 per 
cent between 1978 and 1981 
according to some estimates. 

• The Srare Economic Enter- 
prises, previously a vast burden 
on the budget, now mainly set 
tbeir own prices and are ex- 
pected to finance themselves at 
commercial terms. 

Many oi these are welcome 
developments. But there are 
also other elements in the pic- 
ture. The latest OECD report 
says that 1982 -will be crucial for 
showing whether they herald 
adequate and balanced growth 
in the medium term or whether 
the improvement has only been 
temporary. 

Is the export boom overdepen- 
dent on the slump in domestic 
demand and exceptional factors 
such as the- Iran-lraq war? How 
much will Turkey pay for three 
years of slump in investment? 
When will domestic construc- 
tion revive? Will it be able to 
finance admittedly improved 
current account deficits — this 
year the deficit is forecast at 3 
per cent of GNP? Is there any 
prospect of the country reaching 
rates of growth which will 
prevent unemployment of 15 
per cent rising yet further? 

Then there are the short-term 
problems, of which the first is 
inflation. Price rises in the first 
quarter of 1982 were above 
those consistent with bringing 
annual increases in consumer 
prices down to 25 per cent. In 
part this may have been because 
of a purely seasonal increase in 
Central-Bank credits to finance 
agricultural stocks, as the 
Turks maintain. But it is im- 
possible to overlook— as they 


do— ibe recent increase in 
money supply. Last year notes 
and coin and total time and 
sight deposits rose by 86.4 per 
cent. Inflation was about 34-per 
cent 

Much of the increase was in 
time deposits. This implies a 
decline in the velocity of cir- 
culation, but as banks seek to 
lend their ever-more costly 
funds, it is clear that the Gov- 
ernment's tight-money policy 
has’ some loose edges. For 
though industrialists complain 
of being squeezed, what they 
are really talking about is what 
they have to pay for their 
funds. 

This cost of funds is the 
second immediate problem 
which the country has to deal 
with. An average industrial 
borrower now has to pay about 
40 per cent in real terms. In 
the short term the Government 
sees this as a useful whip to 
oblige firms to improve their 
financing structure; an increas- 
ing number are replacing bor- 
rowed funds with equity — often 
brought back quietly from 
illegal accounts abroad. “A year 
ago I told industrialists to sell 
their villas and invest in their 
companies," Mr Ozal says wryly 
today. 

He also points out that high 
interest rates for domestic 
credits encourage companies to 
seek the much cheaper money 
available for export purposes — 
and. ultimately, to export. 

But in the market place 
things are not always working 
out this way. "Mr Ozal's incen- 
tives tend to become privileges 
for the industrial aristocracy." 
according to Mr Murtaza 
Celikel a spokesman for small 
industry at the Istanbul Cham- 
ber of Industry. 

Equally, while the more 
dynamic firms can pass their 
interest charges onto iheir 
customers, others find that 
today's depressed local market 
means they are totally unable 
to meet the charges. There is 
an additional burden on com- 
panies which have borrowed 
foreign exchange when the 
lira was worth far more abroad 
and have to repay such loans 
at today’s exchange rates. One 
bank has calculated that the 
arrears on its industrial loans 
now total TL lObn <£37m). 

Such problems have led some 
banks to include - unpaid 
interest debts in their balance 
sheets as outstanding loans — 
and this problem of the banks 
is a third issue of importance. 

In his office overlooking the 
Bosphorus. Mr Erol Sabanci. ' 
chairman of Alcoank and one of 
the country’s more successful 


bankers, is quick to describe the 
squeeze on bank margins. By 
his calculations the marginal 
cost of funds is now about 10 
per cent higher than the return 
on normal loans which particu- 
larly hits email banks. 

In Ankara officials insist that 
the Ministry of Finance has 
been given instructions to keep 
an eye on the banks. It is 
particularly important they do 
so as this winter there was chaos 
when a series of large money 
lenders went bankrupt Yet 
today it is particularly notice- 
able how officials dismiss the 
way the banks handle their 
balance sheets: "They always 
window dress their end-year 
figures," one comments. 

Such problems are in a sense 
the sort of the issue which in 
most countries would be 
bandied by the Ministry of Fin- 
ance or the Central Bank. In 
Turkey they have to he dealt 
with by Mr Ozal himself. 

As time has gone by, so the 
other bodies of stale dealing 
with the economy have been 
progressively emasculated. 

All this means that the burden 
on Mr Ozal has steadily grown 
— and he has just agreed to 
undertake a reform of the 
bureaucracy. it is perhaps 
because of this that there has 
been a tendency to deal with 
individual parts of a problem 
rather than the underlying 
problem itself. 


One example cited by traders 
is that of exports. Here there 
has been some cutting of red 
tape and the introduction of 
subsidies and incentives — to the 
extent that the latest report by 
the Paris-based Organisation 
for Economic Co-operation and 
Development is beginning to 
complain. But up to 23 signa- 
tures can still be required for a 
first-time exporter. There is no 
overall export law. Instead 
there are numerous regulations, 
coupled with a bureaucracy 
wedded to the past. Recently, 
one trader was priding himself 
on having finally broken with 
tradition to arrange Turkey’s 
first export of butter to Iraq. 
But when his lorry reached Ibe 
Turkish border his driver was 
told that under a little-known 
1974 law butter was a strategic 
item and could not be exported. 

Mr Ozal's answer to such 
points is to quote the recent 
rise of Turkish exports — and 
say that one of the countries 
with the worst export formali- 
ties is Japan. “Our problem is 
less with laws than with 
habits. 


large private firms on the brink 
_of collapse — the textile firm 
"Guney Sanayi and the steel 
producer Aslleellk. 

Equally, he has had to move 
more slowly than he would have 
liked in forcing the State Eco- 
nomic Enterprises to stand on 
their own 35 feet. 


More significant are tbe prob- 
lems be has had in opening the 
country to market forces. It 
was probably with the same 
sort of feeling as Sir Keith 
Joseph used to have at the 
Department of Industry that Mr 
Ozal has found himself this 
winter having tD bail out two 


Ultimately more serious may 
be the difficulties he has been 
having in tackling the import 
barriers which continue to 
cocoon Turkish industry and 
mean that few' goods produced 
in Turkey can also be imported. 

Mr Rahmi Koc, chief execu- 
tive of the large Koc group, 
says he could accept an end to 
the protection his white goods 
and car firms enjoy provided 
it was introduced over a period 
which would allow him to in- 
vest and adjust. He suggested 
a period of three years. Mr 
Ozal talks of such progress over 
six years. But only two years 
remain until the present 
regime is committed to holding 
elections. 

It is worth stressing this prob- 
lem if only because it is one 
which Mr Ozal inherited and 
which could well persist after 
him. A second long-term issue 
is that of unemployment 

In recognition of this Mr 
Ozal stresses the need for 
labour-intensive industry. He 
underlines his support for agri- 
culture, which should have the 


effect of keeping people on the 
farm and discouraging migra- 
tion to the cities with all its 
attendant problems. Yet here 
the reality is more complicated. 
For the agricultural sector’s 
relative purchasing power has 
been declining and it was the 
agricultural bank, the Turk 
Ziraat Banka si, which was 
obliged to buy the shares of the 
two main industrial companies 
which were about to go under. 

Certainly, there may still be 
problems in individual sectors. 
Certainly there are structural 
issues to be tackled. And the 
country remains heavily depen- 
dent on aid in the OECD's pipe- 
lines — some $2bn this year — 
particularly in view of the 
general bank worry about third 



Turgut. Ozal: designer of 
the programme 


world lendiDg. But for Turkey, 
1982 is a long way from 197S— 
and in the right direction. 


David Tonge 


OECD SCENARIOS TO 1985 


Annual growth until 19S5 at: i 

in' C CIT- I 


4% 

Trade balance -4,500 - 

Invisibles . 4,000 3.900 

Current aecoimt ” 500 — l.ooo 

Capital aeeount — 850 550 — 

Overall balance ( including 
payments on current IMF 

advances) “ 1|650 2.'^ 

OECD comment * m 1 

Unemployment (now 15 per cent) li-6 

* ** Not difficult." t “ Manageable.” t " Unsustainable.’ 
Source: OECD 1982 Economic Survey. 


5.5% 

-5,450 

3,900 

— 1,550 

- S50 


— 6.200 
3,750 1 
-2,450 • 
- 850 


-2.700 

t 

16.2 


-3,600 

* 

13.3 


Mehmet Okumus: how to become super rich 


ECONOMIC CRISES, tike ware, 
create their own class of new 
super rich. Mr Mehmet 
Okumus. one of the best- 
known members of this class 
in Istanbul, sat behind a vast 
desk in an office the size of a 
tennis court, and dismissed 
tbe jealous speculations 
surrounding his swift ascent 
to wealth and power. 

“I was not born by a prayer so 
curses will not kill me,” he 
said, quoting a proverb from 
his native Antakya, where he 
was bom 42 years ago. "Cus- 
tomers came, we sold, they 
bought. God helped, and here 
we are." 

Mr Okumus, the son of a well- 
to-do textile and shoe mer- 
chant in Antakya. studied 
economics in Switzerland. In 
1968 he returned to Istanbul 
and became a. car dealer. In 
1973, when car sales started 
booming, he started Hak Oto, 
his first company. The rest 
of his 14 companies, which 
constitute his • family-owned 


Okumus Holdings, established 
last year, were either founded 
or acquired starting from 1978 
when Turkey's economic 
crisis erupted. Textiles is his 
main business. 


The secret or bis success seems 
to be that he realised quite 
early the easiest and quickest 
way to growth in an economy 
with a depressed market was 
to export and buy companies 
which would face difficulties 
because they could not export. 

In 1980 Okumus Holding's 
exports amounted to about 
$5m — from nil in the previous 
year — and his consolidated 
turnover to TL 3.5bn — from a 
figure in the previous year 
which Mr Okumus prefers not 
to remember. In 1981 Okumus 
expons shot up to S82m and 
turnover to TL 14bn. Mr 
Okumus claims he is now 
Turkey’s largest private sec- 
tor exporter. This year he 
plans to push, up exports to 

• 8200m. 



Mehmet Okumus: a 
formula for success 


that his recent visitors had 
arrived from such distant 
places as China and the U.S. 

Okumus Holding’s main export 
item last year was ready-made 
clothing, some of which it 
manufactures under the pres- 
tigious • patent of Pierre 
Cardin. These amounted to 
about $64m. followed by $10m 
carpets and $5m cotton yarn. 
His biggest buyer was Libya. 
This year Okumus Holding 
plans to re-direct its products 
to other members of the 
Organisation for Petroleum 
Exporting' Countries and 
Europe and to diversify to 
include commodities - not 
directly manufactured by its 
subsidiaries. 


a disused Ottoman palace 
along the shores of the Bos- 
phorus. 


He had to drink bis Nescafe 
in big gulps because his tele- 
phones rang incessantly, 
ohliging him to talk to two 
people at the same time. His 
wife, who runs the export 
division, walked in without 
knocking and informed her 
husband that the board meet- 
ing would start in a few 
minutes. 


" I have about 40 people right 
now running around the 
Middle East and Europe sell- 
ing,” he said. “ If we were 
bigger and better organised 
we could easily export S500m. 

He placed a pile of business 
cards in front of me to show 


Confident of sustained growth. 
Mr Okumus is buying two 
cargo ships, going into over- 
seas construction and explor- 
ing the possibility of joint 
ventures in hotels and resort 
development. His pet project 
is to set up a Maxim's res- 
taurant with Pierre Cardin at 


I work 11 hours a day, some- 
times 14,” said the soft-spoken 
businessman. "I am on the 
road 10 months of the year. 
I like to pa-int, fish and to go 
to the opera and the theatre 
but, as you can see there is 
no time." He pointed at the 
desk where, this time, all 
three telephones were ringing 
simultaneously, and the door 
opened to admit the members 
of his executive board. 


Metin Mnnir 



ay. 


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SECURITIES, BROKERAGE and FINANCE CORPORATION 







VI 


Tomorrow's security: 


Agro-Industry 


T.C. Ziraat Bankasi is the bank 
which mainly finances agricultural 
.sector in Turkey. 

We start with the object of 
securing better quality and 
higher productivity. After the 
harvest, both domestic and 
international sales are actively 
encouraged and economically 
backed up. Finally comes the 
financing of ail kinds of 
industries based on agriculture. 


Result achieved is the fact 
that Turkey today is one of the 
few countries in the world, 
who can feed herself and 
still export agricultural products. 


T.C. Ziraat Bankasi has allocated 
$ 3.200.000.000 credit facilities for 
Turkey’s agricultural produce in 1982 
and is determined to continue 
to help Turkey and the world 
to reach a safe and secure tomorrow. 


Dynamically active in all sectors of banking, T.C. Ziraat Bankasi is the leading 
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HEAD OFFICE-ANKARA TELEX 42703 ZB UMTB REPRESENTATIVE OFFICES LONDON, NEW YORK, FRANKFURT, HAMBURG, KOLN 


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ADVERTISEMENT 


TURKISH PETROLEUM CORPORATION 


Turkey's largest single enterprise 
The “ feedstock " of the Turkish economy 

What dn vnu know about Turkey V . . Rid ynu know, for 
example, that Turkey J> one of the world's seven emi nines self- 
sufficient in the production of foodstuffs?. Potentially Turkey 
is also among the world's richest countries for other resource... 

As an example of the fast -chanping Turkish economy, take 
wheat. Not long ago. Turkey was importing wheat along with 
other foodstuffs. Today.whcat is an export Hem and is one 
of the main pillars of lhe Turkish economy providing liie 
country with hundreds of millions of dollars annually. Many 
other examples i-utild he given. 

Dn you know how fa<t Hie Turkish economy — and hence 
Turkey — is. changing'.' Think of Turkey, unlv tw.i years ago — 
In deep financial trouble, almost broke, with an inflation rate 
over 120 per cent per year, anarchy and terrorism tearing the 
country apart, with almost no credit uhatiovvcr. under any 
circumstances. 

Then look at the reality today. Turkey's- inflation rate of 
about '.25 per cent was unthinkable only a few years ago. 
Turkey’s economy last year was voic'd by prestigious economic 
publications as the " number one improving economy of the 
year." 

Turkey V deputy prime minister lias been named as the 
"economic minister of the year." The sro.vih rale of the 
Turkish economy is the largest in OECD countries this year. 
Turkey is directly or indirectly exporting its produce, products 
expertise, manpower and know-how in l>'rms of several billion 
dollars and which is expected in the near future to exceed 
tens of billions of dollars. 

These facts ar-* remarkable enough. aien'f they? Well, 
today one can find many repetitions of I he sat nr in various 
fields nf the economy and social life. To start with. until iwn 
years ago. Turkey waj, fighting for its very existence Internal 
terrorism hacked and financed by international terrorism 
almost Mopped everything in the country. People could not 
venture outside after dark even on Hie boulevards of the 
capital — Ankara. An average of 20 people were killed per day 
In the country. Suddenly in the pre-dawn hours ni September 
12. 19SU. the Turkish armed forces once again slcfpcd in to 
■ save the Turkish Republic. The military operation of 
September 12 has restored Turkey's traditional tranquility, 
and provided security in which business and trade can llnu rich. 
Today, flock's of tourists from ail pans of the world are 
crowding sunny and warm beaches, world famous restaurants 
anil the museums of Turkey once again. Nightlife i- going on 
where tourist groups can enjoy anything from traditional 
body dancing to the lates'f disen or hard rm-k music. 

Another group. in numbers, comes immediately after 
tourists — businessmen. Now- that Turkey is following an ever 
more liberal economic policy, an increasing stream of new 
foreign investors and representatives are living into Istanbul, 
Ankara, and lrmir airports. They arc from every walk of the 
commercial world. This is not surprising since, sterling from 
January 1950 many governmental decrees libei a Sized many 
former restrictions on trade, exports, imports, mineral explora- 
iiitn. elf., numerous decrees have followed rince Htpn. Coupled 
with the tranquility and security c-slablished afle 1- September 
12. these measures made Turkey mure and more attractive 
fnr foreign investors. 

Even more importantly, the present leaders and the 
Government of Turkey are preparing the ground for a sound 
democracy which will not he misused by any group for any 
purpose. Turkey is prospering and will continue to grow in 
serenity. It has been m this context that, among other. 5 , foreiqn 
petroleum companies have started to move into Turkey. In 
early 19KI). maps of Turkey showing petroleum exploration 
licence areas were almost barren. Today, those maps took 
like a colour-burst mosaic made up of hundreds of rectangles 
of various slianes and colours, representing over 20 companies 
which have become active in oil exploration } n Turkey during 
lhe past Iwn years, 

Turkey forms part nf Hie repinn which contains some nr 
the world : s largest petrolettm reserves, hut because of the 
country's financial limitation.*, Turkey’s petroleum potential is 
relatively unexplored. 

Or course, it cannot be claimed Hurt Turkey cntild he 
anorher Saudi Arabia or Kuwait: Turkey'* ecological simiiure 
is a hit more complex than theirs. But. it should not be 
forgotten that in many countries, such ns Libya. _ considerably 
exploration work was undertaken at great cost before discover- 
ing Hie first nil well. 

Again in many places such a.s Libya, investin'- companies 
aohict ed boundless prosperity by making a 11 Iasi drilling 
berure thev were lo leave the area fnr good. The Isteci example 
of such a discovery is North Sea nil. These arc not fanM'ie*. 
but living realities. Turkey is as promising as tb«* areas. 
Turkov, from a serious exploration and production procramme 
nf onl’v 40 rears, is today producing more Ilian Italy, West 
Germany. France and. Austria, where oil has been explored for 


over a century. Bearing in mind that Turkey has been explored 
for so short a lime compared with many areas of the world, 
its petroleum potential can be heller understood. 

The greatest portion of oil exploration activity is presently 
carried out by lhe Turkish Petrnleum Corporation (Turkije 
Petroiferi A.O. — TPAGi which is Turkey’s largest single enter- 
prise with a daily average turnover of 17.8 million U.S. dollars. 
TPAO is an established institution which, like ils international 
counterparts, is vertically integrated from oil exploration to 
marketing. For at least the past ten years, the Turkish 
Petroleum Corporation has heen included in *' Fortune's ” 
traditional list of the world's 500 largest industrial firms. 

Employing over 7.000 staff. TPAO nwns 38 rigs (of which 
27 are active i. produces from over 300 nilwells, operates three 
refineries with a present total capacity nf over 15 million tons 
per annum, and controls millions nf acres of exploration 
permits which cover Turkey's most hopeful areas for petroleum 
exploration. 

In addition. TPAO owns wholly or partially a refining 
company tlPRASl. a pipeline company tBOlASt. a netro- 
chemival company (PETRKIMt. an artificial fertilizer company 
(IGSASi. an eneineering company (Tl/MASi. a natural cas 
company (IPRAGAZt. and three marketing companies (ADAS. 
IS1LITAS and Turkish Cypriot Petroleum Company!. 

TPAO has been active under this name for slightly over 
27 years. However, the roots of the company go back to the 
establishment in 1935 of the State Geological Survey and 
^lining Institute (MTA'l. The Turkish Petroleum Corporation 
was founded with a special law enacted in 1954. Although it 
is basically a state economic enterprise, law No. fc327 gives it 
virutal freednm nf action in every field of its aelvitics, in 
other words. TPAO is a private corporation exactly like its 
western counterparts, with its own board of directors, its own 
companies and policies. In addition, it has a tradition which 
encompasses almost half a century since the original 
foundation nf 3WTA. 

Most of Turkish Petroleum's staff are qualified with a 
degree from a western University. Presently the Corporation 
lias over 30 .students in preparation for future employment in 
TPAO. in the most prominent L'.S. universities in their fields, 
as well as several students in European universities. Moreover, 
numerous TPAO staff are following courses in various U.S. 
and European universities and companies. In absorb the latest 
developments in their specialized areas of technology. 

Then, no wonder representatives of almost all foreign 
companies, who want to take part in the Turkish exploration 
scene come direct hr to TPAO. 

TPAO management confidently declares that so far as new 
frontiers in petroleum exploration are concerned, Turkey is 
exactly where the action is. 

Naturally, when discoveries start their huill-in rewards 
will go to those who will be in Turkey when it was happening. 

New requests, inquiries, and applications come in daily, 
and frequent negotiation sessions go on between TPAO and 
foreign companies. 

"Today, one of the safest areas in the world for snund 
investment is Turkey." sums up Dr. Ismail A. Kafescioclu. 
TPAO's V S. educated chairman and general manager 
(Stanford and Case Western Reserve University). *' In our 
Corporation we guarantee no red tape: for us tint" is money. 
To any proposed venture we say ‘yes' nr * snrry' in ihp 
shortest passible time, without wasting anybody's time and 
money." 

The business of petroleum exploration in Turkey is 
becoming more and more attractive, with new incentives. The 
so-called Petroleum Reform Law. which severely limited the 
activities of foreign companies since its enactment in 1S73, is 
being amended to guarantee a safe environment for investment 
in petroleum exploration; and, more important, the safe return 
of Hie investment and profits. 

The draft law before the Assembly Guarantees, among 
other clauses: 35 per cent of newly discovered oil for expnrt 
(or 45 per eeni in case of offshore discoveries)- well-head 
prices at international competitive, free market prices, right 
nf foreign companies to build and own refineries and pipelines 
after they discover sufficient oil: longer Dn? limits for 
drilling obligations: and above all a “business-like apprnarh" 
to foreign oil companies. 

In addition to ibi* favourable investment rlimaie. TPAO 
ha* -an enormous collection of data. maps, sections thnth 
ecological and geophysical) as well a.s expertise and 
experienced manpower. 

In general. Turkey lacks the mnst adi anted lethnoiocy 
and alio the necessary finances for extensive exploration nf 
such a big country (lhe largest in Europe except USSR). It 
is well understood at the highest levels that Turkey will benefit 
From foreign participation. The Turkish Petroleum Cnrporaiinn 
is ready for mutually beneficial joint ventures. 

Exploraiinn for petroleum in Turkey can be recommended, 
indeed, for those who like challenge with the prospect nf 
potential big profits.” 


Financial Times ^Monday May lv 


TURKEY VI 



A gentlemen’s agreement planned by the banks has hit snags. 


|gfl £ 


Interest rate 



seen as mixed blessing 


THE LIBERALISATION of 
bank Interest rates has resulted 
in a remarkable increase in 
funds deposited with commer- 
cial banks. It constitutes one of 
the most successful parts of 
the Government's monetary and 
credit policy. 

In 19S1 total deposits 
increased by almost 110 per 
cent, to TL 1,500 bn. Time 
deposits have grown by 263 per 
cent and sight deposits by 50 
per cent, according to the 
figures of the Central Bank. 

The less bright side of the 
picture — which is as yet far 
from clear — concerns the effect 
liberalisation has had on the 
banking system. 

Before liberalisation, man- 
datory borrowing and lending 
rates were fixed by the Govern- 
ment. At times of high 'infla- 
tion — frequent in Turkey — 
rates yielded negative returns to 
depositors. Banks and bor- 
rowers benefited. So great -was 
this benefit that most businesses 
financed their investments and 
operations with between 8n and 
90 per cent bank loans, putting 
up only between 10 and 20 per 
cent of their own assets. 


Uniform limits 


In July 1980 the Government 
decided to free interest rates. 
The banks got together to set 
uniform limits through a 
“gentlemen's agreement.” which 
subsequently was periodically- 
reviewed. But the agreement 
did not work. As one Turkish 
banker pul it, “wc are not all 
gentlemen." 

That is how the problem 
started. Many small and medium 
sized banks, which thought they 
saw an opportunity in the new 
environment to become big 
quickly, started offering under 
the counter higher interest 
rates. Mast of the bigger banks 
had to join the race. 

Depositors, who had not been 
getting their money's worth for 
years, gained. Net return on 
deposits, which is 37.5 per cent, 
went up "unofficially" to 40 
per cent and higher. Similarly, 
the official lending rate, which 
is about 51 per ceni went up 
to 64 per cent and higher. 


The effects on the banking 
system have been manifold 
and in many cases negative. 
Principally, the race for 
deposits increased the cost of 
deposits substantially through 
a combination of interest, over- 
heads. cost of -funds and bad 
debts. The only way in which 
this cost could be met was 
through an increase in lending 
rales, through direct and 
indirect ways. 

*• It is very difficult for a 
normal business to utilise loaus 
at the current high cost leveL" 
said a leading banker. “But 
such trading or industrial com- 
panies are obliged to use these 
loans so as not to stop their 
operations. The demand has 
not decreased and will not 
decrease. This situation will 
leave a lot of companies facing 
bankruptcy. Banks will not be 
able to retrieve their loans, and 
to a great extent loans will 
become frozen assets. 

Even today, many banks aTe 
able to collect the interest on 
their loans only by making 
fresh loans available. In the not 
too distant future this trend 
will shake the whole banking 
system and have negative effects 
on th* economy." 

This may be too gloomy an 
assessment, and one with which 
the Government does not seem 
to agree. Mr Turgut Ozal, the 
Deputy Prime Minister and 
economic maestro, contends that 
“ the new' liveliness of the 
banking sector owes itself to 
Hie free interest rates.” 

He says that the Government 
has no intention of going back 
to fixed interest rates. Indeed,; 
in its latest letter of intent to ' 
the International Monetary 
Fund (IMF), Mr Kaya Erdem, 
the Minister of Finance, » 

pledged that the Government 
would "maintain interest rates 
at positive levels in real terms 
for savers and general 

borrowers.” 

Smaller batiks also say that 
there is nothing wrong with 
digressions from the fixed rate. 
"The only advantage we have 
over the bigger banks is that 
we offer slightly higher interest 
rates,’' said the manager of a 
small bank. “ What other reason 


ASAF GUNERI 


Shipowner on a 
buying spree 


A TURKISH shipowner may 
sound as rare a bird as a 
Greek cameldriver, but Mr 
Asaf Guneri represents a new 
species which is just begin- 
ning to flap its wings. As 
Lloyd's List reported last 
month: "Turkish owners 

brighten up a lacklustre mar- 
ket" in secondhand shipping. 
For having long been stuck 
on the shore. Turkish ship- 
owners arc now on a buying 
spree which already this year 
involves over 30 ships rang- 
ing from fishing boats to 
250.000 dwt super I ankers. A 
fleet which at the end of 1981 
totalled about 2.8m tons has 
risen in three months by at 
least 0.6m tons; Mr Guneri 
says this is just the beginning. 

When he joined his grand- 
father's firm, the Zihni Com- 
pany. in 1966, this was a 
struggling Istanbul - based 
shipping agency, stevedoring, 
bunkering and coal-exporting 
firm. His father had just died 
and. while studying at 
Istanbul Commercial College, 
he found himself having to 
learn the ropes from the 
chairman’s seal. 

He then began to widen ils 
shipping activities and in 1975 
bought Zihni its first ship, a 
4.455 dwt tramp. Today Mr 
Guneri, still aged only 34. has 
a fleet of 400.000 dwt, cheer- 
fully talks of investing $75m 
in the next IS months and 

* divides his time between Lon- 
don and Istanbul. 

“I have learnt a trick nr two 
from my Greek friends,” he 
says, but the recenl flowering 
of Turkish shipping \s also 
because Ankara loo has begun 
to learn some of the buc- 
caneering-truths of the high 
seas. 

Turks have long complained 
thai 70 per cent of Turkey’s 

fnreign trade is carried on 

foreign ships, costing the 
country 81 bn a year ol scarce 
foreign exchange for freight 
Kafknesque bureaucracy, 
special port taxes, Ministry of 
Finance suspicion, and dis- 
trust of private enterprise — 
all these combined tn keep (he 
Turkish flag low. In 1975 a 
law prepared by the Ecevit 
Government was Issued to 
help the country's fleet de- 
velop. ll was never properly 
implemented. 

Pan of the reason was that 
Turkey's Shipowners’ Asaocia- 
liun showed JiiHe mierest in 
changing matters, ll was long 
dominated by sail-hy-nmht 
small owners doing business 
in uncertain cargnes. It was 
only after Hie military take 
over of September 1980 that 
such owners realised they 
should ally with " the good 
boys” and jointly lobby' the 
generals. 



Asaf Guneri: a fleet of 
400,000 dwt 


Last autumn the generate re- 
jected a single Bill which 
would have done much to re- 
duce the bureaucratic, foreign 
exchange and lax restrictions 
on the Turkish flag — and 
brought the small amount of 
“ convenience registered " 
shipping home. However, the 
Turkish Prime Minister, a 
retired admiral, appointed 
another retired admiral to the 

new post of undersecretary 
for shipping. Since then a 
series of decrees has come 
out which qo far to explain 
lhe Turk's market flurry. 
Most crucially. Turkish ship- 
owners now qualify for the 
same henefils as Turkish 
exporrers and they no longer 
have to pay a 25 per cent 
Turkish lax on the interest 
nn all loans contracted abroad. 


For the moment the Turkish 
Maritime Bank, the state- 
owned Donizeilik Bankasi. 
with 1m dwt or shipping re- 
mains the largest single 
owner. Day by day fami- 
lies such as Baran, Cerra- 
liogulteri, Kocman and Son- 
mez arc catching up. Neither 
they nor Mr Guneri claim they 
are yet in the Greeks' league, 
but they finally feel they can 
hold their heads high abroad 
and make their voice heard 
in Ankara. 


Mr Guneri recounts: " Last July 
1 told a meeting of officers 
how. Turkey's arcane regula- 
tions had just obliged me lo 
forge a lelex lo get a ship out 
of Singapore. They could 
have prosera led me. Instead, 
the next . day. they changed the 
regulation” 


David Tonge 


would people have for deposit- 
ing their money with us? In 
any case, we are so small that 
we cannot hurt the big ones.” 

Actual developments, how- 
ever, show that the interest 
race — which Mr Erod Sabanri. 
managing director of Akbank, 
the biggest private bank in 
Turkey, calls "interest anarchy” 
— has started hurting some 
banks. A number are facing a 
growing bad debt problem. It is 
not known how bad the problem 
is, as no bank is likely to publish 
such figures. However, this year 
for the first time a few small 
and medium size banks re- 
frained from entering ail 
accrued interest liabilities as 
expense in. their 1981 balance 
sheets in order to be able to 
show a profit, whereas in actual 
fact hey had made a lass. It is 


evidence that all may not he 
welL This winter, saw major 
problems for a number of the 
small brokerage houses — 
known as “bankers" but effec- 
tively money lenders. Follow- 
ing warnings by the. authorities' 
a run developed which led to 
several smaller “"bankers " go- 
ing bankrupt. 

The move among some bigger 
banks is to return" to the fixed 
mandatory interest rate deter- 
mined by the Government and to 
bring down both deposit and 
lending rates to more realistic 
levels. They suggest that this 
rate could be reviewed periodic- 
ally in order to ensure that the 
yield to investors is positive. 
Sucb a development, said one 
leading banker, is inevitable in 
the next quarter. 

Metin Munir 


EROL SABANCI 


. Aggressive banker 


MR EROL SABANCI is 
deceptively quiet and modest 
for a man who has the 
reputation of being the most 
aggressive banker in Turkey, 
who is now venturing abroad. 

Since he joined the board 
of Akbank— of which he Is 
now manager-— 18 years ago, 
he has thrust the bank for- 
ward to become the biggest 
of Turkey's privately-owned 
banks, with TL 2.5bn (£9m) 
share capital, deposits -of 
TL 224hn and more than 600 
branches. 

Akbank also has major 
shares in a number of other 
Turkish banks. However, Mr 
Sabanci insists that the other 
companies in the Sabanci 
group have strict instructions 
to do most of their business 
with banks outside the group. 
"We are not a house hank,” 
he says. At present. 10 to II 
per cent of Akbank's advances 
are to family firms, well" 
below the 15 to 20 per cent 
limit, he says. 

He is one of -the five 
talented . Sabanci brothers, 
whose Sabanci group has a 
majority stake in Akbank. The 
group was founded by their 
father, Mr Had Omer Sabanci 
and is now headed by Mr 
Sakip Sabanci. Its 80 com- 
panies cover a wide range of 
activities, including cement, 
textiles, tourism, electronics, 
and construction equipment. 
With the Koc and Cukurova 
groups, it is the biggest in 
Turkey, and like them, is 
especially active in hanking. 

Erol, 44, claims to feel more 
personally involved in his 
clients’ successes than most 
bankers. “I love this busi- 
ness,” he says. "To deal with 
the different kinds of 
business activities and indus- 
try is a very colourful 
activity. If they are success- 
ful, that gives me the 
greatest pride.? 

This sense of involvement 
springs from the two years 
he spent managing an indus- 
trial concern of his own—- 
the family flour mill at 
Adana — just before joining 
Akbank. His education began 
at Tarsus American college, 
after which Mr Sabanci moved 
to Manchester for a three-year 
course in commercial studies. 

Akbank has just opened a 
subsidiary, Ak International, 
in London with £5m autho- 
rised capital. It is the first 
such Turkish venture abroad 
and is wholly owned by the 



l". - 


Erol Sabanci: ven turi ng 
abroad 


Sabanci group. Previously. 
Turkish banks only had rep- 
resentative offices abroad. 


Ak International, of which 
Mr Sabanci is chairman, .is 
already incorporated and is 
hoping for authorisation from 
the Bank of England at the 
beginning of 1983. 


Importance 


“We. selected Loudon be- 
. cause we give it tremendous 
importance as an interna- 


tional banking sector.” says 


Mr Sabanci. Akbank's em- 
pire also includes stakts in 
the Turkish Industrial De- 
velopment Bank. Industrial 
Development and Credit 
Bank. Yapi ve Kredi Bankasi 
and Turldye GaranH Bankasi. 

He hopes that his two 
daughters will continue the 
family tradition. The eldest 
is in her last year at Hcalfi- 
field School, Ascot and is to 
study business administration 
al university next year. 

Mr Sabanci stresses how 
Turkish banks are still feel- 
ing the effects of the Goiem- 
menl'p {retains Hm years ago 
In free interest rates. While 
this led to 3 flood of savings 
into the banks, it has also 
meant that some companies 
are badly lilt by real interest 
rales of around 45 per cent, 
ne warns that some of Hip 
smaller Turkish banks which 
have r. hicrh exposure lo such 
companies could be at risk. 




Con 


s! 


Coni 


William Dawkins 


%i0r. 


HI REAL ESTATE 
INVESTMENT, 
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Financial Times Monday May 17 19S2 

TURKEY VII 



ECONOMY 


Turkey could become the food “supermarket of the Middle East” 

Agriculture eager to expand 


TURKEY MAY be one of Gib 
developing countries hardest hit 
by the cost of importing oil, but 
it does have a major and as yet 
still under-exploited asset, its 


PRODUCTION BY PRODUCT 

(In *000 tons) 


Per- 


Amxual 


It has indeed “ food security," 
and with careful development 
and planning could become an 


1977 

1978 

1979 

1980 

Provisional 

1981 

centage 

change 

1980-81 

percentage 
growth rate 
1977-81 

important exporter. Mr Ali 

Wheat 


16,700 

17,500 

16£00 

17,000 

3.0 

0.5 

Kocman, the" president of 

Cotton 


475 

476 

500 

500 

0.0 

(3.4) 

TTJSIAD, the Turkish indns- 

Grapes 


3.496 

3.500 

3,600 

3,600 

0.0 

3.2 

trial ists and businessmen’s 

Hazelnuts 


310 

300 

. 250 

350 

40.0 

4J5 

association, was probably only 

Citms fruit 


1,081 

1,147 

1,174 

1,182 

5,900 

0.7 

0.8 

slightly exaggerating last 

Barley 

4,750 

4,750 

5,240 

5,300 

1L3 

5.6 

month when he said that 

Tobacco 

248 

203 

217 

228 

200 

(12-3) 

•(5-2) 

Turkey u is one of the seven 

Sugar beets 

M81 

8,837 

8,760 

6,765 

11,000 

1*507 

62.6 

5.5 

countries in the world that can 

Oil seeds 


1*297 

1,410 

1,653 

<8£) 

3.6 


Rice 

277 

305 

330 

234 

290 

23.9 

1.2 


Tea 


450 

555 

476 

200 

(58.0) 

(15.7) 

export.” 

Olives* 


1,100 

430 

1,350 

600 

39.5+ 

23.2+ 


Taking into account its geo- 
graphical position it would not 
be an exaggeration to say that' 
Turkey soon may become, the 
“ supermarket of the Middle 
East.” General Evren, himself 
talks of “ wheat for oil.” 

A major question remains 
over whether the Turkish 
Government has really con- 
fronted rather than recognised 
agriculture’s problems and 
potential. It has been stagnat- 
ing. The emigration from the 
rural areas — perhaps as many 
as 3,000 a day into Istanbul — 
has not been halted. 

Growth rates may be picking 
up. Agribusiness has been 
recognised as a potential area 
of profitable expansion (not 
least for exports): . Neverthe- 
less. the impression remains 
that while agriculture is broadly 
being improved, for. the moment 
it is used to finance other parts 
of the . economy, notably 
industry. The Turkish agri- 
cultural bank, for instance, has 
recently been ordered to buy 
into losing steel and textile 
firms to prevent them going 
under. 

The country's potential is 
high and recognised. Professor 
Ali Balaban; the Dean of the 
agriculture faculty at Ankara 
University, deftly reels off the 
figures, “ lOObn cu m a year of 
usable water. 24m hectares of 
forest 22m hectares of grass, 
12 m hectares of irrigable land, 
and 83m animals.'.’ 

Further, although agricul- 
tural workers have been repre- 
senting progressively a smaller 
proportion of employment — 67 
per cent in 1970 — they still 
account for about 60 per cent 
of the labour force. Agriculture 
accounts for about half all 
visible export earnings. In 
1981, this meant $2.2bn out of 
total exports near to $6bii. 


* The olive harvest follows, a two-year cycle, t Represents the percentage change of 1981 over 1979. 
X Represents tit le average of tSte percentage changes of 1979 over 1977, 1980 over 1978 and 1981 over 
1979. Source: State Institute of Statistics. 


The growth: rate of agricul- 
ture has, however, been a source 
of concern and a reflection of 
neglect. In 1980 it rose almost 
by two per cent, the next year 
by half a per cent, this year, 
the projection is 3.2 per cent 

This latter target could be 
attainable, not least because of 
greater fixed capital investment. 
The Government has. finally, 
promoted it to its third target 
of interest after energy and 
infrastructure. Thus in 1981' 
when ‘ it was to receive 
TL 119.6bn or 9.3 per cent of 
both public and private invest- 
ment of TL l,280bn, the pro- 
gramme for this year envisages 
investments of TL 148.5bn, or 
11.2 per cent of the overall 
figure. 

The debate 

The current debate is 
whether Turkish agriculture 
should be expanded or intensi- 
fied. The argument -tends 
towards the latter but the 
eventual development of the 
$4bn Ataturk dam (discussed 
elsewhere in this supplement) 
could expand the irrigated area 
in south-east Turkey by some 
2m hectares around Urfa and 
Hilvan. 

Intensification can come 
mainly from the following 
sources: 

• Fertilisers. Currently, accord- 
ing to Professor Balaban, 6m 
tonnes/year are being used, but 
the target over the next four 
years is to raise this consump- 
tion to 15m tonnes. ... 

• Me chanisat ion. Currently 



CORPORATION 

Construction 

and 

Contracting 


head OFFICE: 


BRANCH OFFICES: 


Mithatpa§a Cad. 13 
Ankara, Turkey 
Tel: 253442 
Telex: 42842 kska tr 

Ye§ilce§me Sok. 4 
Goztepe, Istanbul 
Tel: 589123 
Telex; 23107 rnoga tr 

Mailaender Strasse 21-11 
6000 Frankfurt/M 
Tel: (0611) 681089 
Telex: 0414208 kiska d 

39 Beauchamp Place 
London, SW3 
Tel: (01) 589 2536 
Telex: 916867 intop g 

Merchants Plaza 
Suite 1313, East Tower 
101 West Washington Street 
Indianapolis 46204 
Tel: (317) 631-5513 
Telex: 276060 tho mer pi ind 

453 St Davis Ave 
St. Davis, Pa 19087 
Tel: (215) 687-05453 
Telex: 4990451 kiska u 

. Almansur 601/15/29 Baghdad 
Tel: 5533261 

F.O. Box 2433 Mekkah 
Tel: 5444561 
Telex: 440230 kiska sj . 


400.000 farm vehicles of dif- 
fering horsepower, but the 
lowest In Europe, and about 
half of what is required. 

• Land reform. Particularly 
in the south east where more 
Gian 800 villages are owned by 
Agas, feudal landlords. A bill 
is under discussion to limit 
private ownership and to open 
land holdings to the landless, 
but like previous attempts, has 
run into resistance. 

In spite of Turkeys innate 
productivity possibilities there 
have been policies from the 
top— particularly in connection 
with subsidies — which have 
produced reactions in farmers, 
who, as in many countries 
elsewhere, feel that their 
material rewards are not 
adequate. 

Wheat is a case in point 
Production in 1981 was 17m 
tonnes, slightly above the 
average for ti%p past five years. 
Domestic consumption is 
between 12 and 13m tonnes. 
Yet because fanners felt- that 
support prices were too low, 
stocks were held back, and 
some 900,000 tonnes of wheat 
are to be imported this year 
to fulfil contracts, mainly with 
rhe Middle East. The Turkish 
press has been raising the issue 
that while, in 1981, wheat 
imports of 272,309 tonnes cost 


847.46m and exports of 315,537 
tonnes brought in 853.79m, 
there was a loss to Turkey of 
$S.84 in terms of per tonne 
costs. The question was asked, 
is this what one of the top ten 
wheat exporting countries 
deserves? 

The international potential of 
Turkey’s agriculture has not 
been exploited fully, particu- 
larly in agri-business. Some 
companies, however, have been 
showing commitment and in- 
terest. 

Unilever, which has had a 
factory at BaJdrkoy. near 
Istanbul, since the 1950s pro- 
ducing margarine, has been a 
pioneer in trying to use indi- 
genous sunflower oil and cotton 
seed oil. rather than having to 
import ingredients. It is await- 
ing construction permission for 
a factory in Corlu in the main 
sunflower growing area in 
Thrace. 

The awareness of the short- 
comings of a potentially fecund 
and profitable sector would 
seem to be slow in percolating 
through to the operational arms 
of the government A major 
point is that unless overall pro* 
ductivity is stimulated, any 
su rpl uses may eventually be 
consumed by a population grow- 
ing by 2.1 per cent a year. 

Anthony McDermott 


Rapid growth in 
transit trade 


MR NEGMETTIN YENER, a 
former staff colonel who saw 
action in Cyprus and who now 
co-ordinates transit trade in the 
Prime Minister’s office, admits' 
that the Turkish Government 
was -initially caught off balance 
by the very : rapid growth of 
this -trade. *. . - • • • 

• Has co-ordinating office was 
only set up at the beginning of 
1981 -and by his own admission 
is only just getting on top of 
the problem. There was a time, 
however, when the queue of T® 
lorries could be tailing back for 
130 km waiting to cross the bor- 
der posts leading to Iraq and 
Iran. Some could be stuck for 
as. long as a month. 

.'•Moreover, Turkish firms were 
beginning to attract a -bad repu- 
tation abroad for taking undue 
advantage of the confusion. 

The growth in traffic, has been 
dramatic, reflecting Turkey’s in- 
creasing economic and political 
ties with'- the Middle East— with 
the .iran-Iraq war thrown, in as 
a bonus! TIR transits in 1972, 
for .-example, were a mere 
itfcOOO. In 1980 they totalled 
112,322 (of which 51,677 were 
of Bulgarian origin and 33,081 
from Turkey). Last year the 
total rose by more than 80 pfer 
cent to 204,617 (7A203 from 
Bulgaria and 41,999 from Tur- 
key). 

The Turkish Government has 
taken measures to ease the flow 
and the wear and tear on 
drivers. Mobile centres have 
been set up across the country 
to cope with the cross-border 
formalities and lorries are now 
bunched in groups of 300 to try 
and ensure that crossings are 
I psa fitful than before. 

Turkey has in fact the third 
largest “ static capacity " — tile 
amount of road cargo it can 
cope with at any one time — in 
Europe after West Germany and 
France. The figures are 2.7m 
tonnes for West Germany. 2.08m 
for France and 1.8m for Turkey. 

The gains to Turkey are in the 
end positive— but mixed. Habur, 
the crossing point with Iraq, 
was built for a daily processing 
of 500 vehicles but has had to 
cope with 4,000. For a time it 
caused- a little amusement that 
while the Turkish side was open 
24 hours a day, the same did 
not apply in Iraq. The crossing 
at Gurtmlak into Iran is 
Handling 600 lorries a day. 

There is inevitably wear on 
the road surfacing. Mr Yener 
makes the point that lorries 
have been, caught carrying 50 
tonnes of cargo compared with 
the official limit of 38 tonnes. 

On balance Turkey gains. 
According to Mr Umut Arik, 
who is in charge of economic 
affairs in. the Foreign Ministry, 
some 5m tonnes of trade passed 
through Turkey in 19S1, 
which 2m went to Iraq and 
1.5m to Iran, with the remainder 
[going to -Saudi Arabia and the 
Gulf. There is some confusion 


as to how much this traffic 
actually means in earnings for 
Turkey. 

The media grandly talk of an 
annual income of about $lbn. 
Both Mr Yener and Mr Arik 
agree that the receipts for the 
central bank this year (leaving 
aside money held back by com- 
panies for expanding their TER 
fleets or the like) is currently 
not more than 5400m. This 
would include some 575 m from 
rail transport This has in- 
creased fourfold over 1980. 

Politics have inevitably played 
a part in the smoothness with 
which goods have moved across 
Turkey’s southern borders. 
Syria's decision in April to cut 
off exports to Iraq was initially 
costing Turkey some 51m daily 
in rail traffic. 

Benefits 

The transit trade exper- 
ience has had longer term bene- 
fits for Turkey. The expectation 
is that even if the Iran-Iraq war 
ends soon, trade with those 
countries would continue, not 
least to help .post-war recovery 
and contractors involved. 
Indeed the hope is that exports 
to each of these countries could 
reach 51bn next year. Tuz- 
cuoglu. the leading transport 
company with some 250 trucks 
and a capacity of 400 tonnes, is 
planning to buy over the next 
year up to 40 more, mainly for 
the conveyance of dry and 
refrigerated cargo from the 
southern ports of Me rsin and 
Iskenderun to Iraq and Iran. 
(The company maintains- how- 
ever. that traffic to the latter 
has been falling off.) 

If Turkey is to keep up 
with the expansion of transit 
trade, it will not just be roads 
which will need improving. Tur- 
kish Airlines has oniv one 
cargo aircraft and is seen as 
being disproportionately costly. 
The railways system is gradu- 
ally being upgraded but as one 
official nut It, “it is a remnant 
of the 1930s.” 

The improvement will have 
to come in the ports and the 
shipping lines. Under way is a 
575m World Bank project to 
improve Mersin and Iskenderun 
on the Mediterranean and Trab- 
zon and Hopa on the Black Sea. 
There is talk of ro-ro lines with 
Romania, with which Turkey 
has just signed an important 
transit agreement and possibly 
Bulgaria. 

The Turkish Government may 
have been initiaHy slow to 
respond to this transit trade but 
with local provincial governors 
in tiie border areas now given 
specific responsibility -for this 
sector, it is probably taking 
things more seriously than its 
neighbours. In the process a 
lasting benefit should be an im- 
proved transportation network 
countrywide. 

A. McD. 



Head Office 

Bankalar Caddesi 
Bozkuxt Han, Kat 4 
Xarakoy, Istanbul TURKEY 
Tel: 444611-457603 
Tlx: 22522 a, b, c 22851 
Cable: KOCTUG 

Office in Europe 

St. Paulusstraat 42 
B-20D0 Antwerp -BELGIUM 
Tel: 313139-327970 Tlx: 32940 
Cable: KOCTUGAN 

ILK. Agents 

PHS Van Qmmeren (London) Ltd. 
Baltic House 
27 Leadenhall Street 
London EC3A 1 AH - ENGLAND 
Tel: 4883242 Tlx: 883801 
Cable : VANOMMEREN 

Clarkson Brothers and 
Casper Ltd. 

236 Marton Road 
Middlesbrough 

Cleveland TS4 2HA- ENGLAND 
Tel: 24 36 62 Tlx; 68462 
Cable: CLARKSON 

US. Office 

17 Battery Place 
New York, N.Y. 10004 -USA . 
Tel: 2690233-2696000 
Tlx: 222635 
Cable: KOCTUGLINE 



KOCTUG Shipping and Trading Inc, 


PORTRAIT 

OF A LEADER 



Bo/emce sheet scat 

- 

ASSETS 

1.1.1982 

1.1.1981 

Rate of 

S 

S 

Increased 

Cash and due from banks 

439.937,781 

191,6291325 

129.6 

Reserve requirements 

281.710771 

170,397,554 

653 

Investment securities. 

109538780 

60,707.965 

81.1 

Loans 

839387,022 

478,704,268 

75.4 

Participations 

45.493377 

25.758750 

765 

Bank premises and equipment 

27,419.474 

20.261.416 

355- 

Other assets 

281502.246 

210910.078 

33.7 

Total assets 

2.025.789.451 

1-.1 58368556 

743 

LIABILITIES 




Deposits 

1.681502.480 

867,172.075 

95.1 

Central Bank 

39.627,602 

34520.777 

145 

Other liabilities 

239.657,113 

211.888597 

13.1 

Total liabilities 

1870.787.195 

1.113581.449 

77.0 

STOCKHOLDERS’ EQUITY 




Capital 

18596.447 

18596.447 


Reserves and Provisions 

36.105.809 

25,790,660 

403 

Total stock holders’ equity 

55502256 

44,687.107 

23.1 

Total liabiTrtfes and. ' 




stockholders’equity 

2525.789,451 

1.158568.556 

743 

PROFIT FOR 1981 (after faxes) $ 17,192,859 


(converted atTL 13230 = UB $ 1) 

Facts and figures do not tell the whole story, of course. The real secret lies in 34 years of 
planned and profitable growth. In today’s terms, that translates into a 95% increase in 1981 
deposits, participations in 64 top-rank industrial companies, and ownership of Turkey’s 
biggest insurance group. To make things easy and fast, we have an on-line network of over 
600 domestic branches and representatives in key cities around the world. If you’re thinking 
of investing in Turkey’s booming economy and need sound advice, we’re the inevitable 
choice. Come see us. 

After ail, the bottom line is our experience. 

AKBAIMK 

"IiteySleading private sector bark"' 


HEAD OFFICE INTERNATIONAL DIVISION 

Metiiu Mebussrt CdiJ 65-63 417-419 

Fsidikh-mabul/TURKEV ThneMsimbuJ 

Trtphon»:*542 20 
T*te:2A13&*tt>j*noitr 


NEW YORK REP RESANTATIVE 
400 P«rfc Avtriu* __ 

New York N.Y. 10022 

Telephone: 445603-456075 USA. 


LONDON REPRESENTATIVE FRANKFURT REPRESENTATIVE 

48-54 Moomie _ 6-Frenkfat/M«s) 

London EC 1R 6 EL KeiierSl- « 

ENGLAND- W. GERMANY 

TAbIkhm: OT-63S-13SS Tetephpiw: fOSM } 3B2KB-251B27 

Tate: 8512330 g Ttex:412116akUmd 


:■/ 





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anywhere in the World . . . 



PRODUCTION, INDUSTRY 
AND COMMERCE LIMITED 


is currently working on major construction contracts in 
North Africa and the Middle East: 


© ROADS 

© HIGHWAY & RAILROAD BRIDGES & TUNNELS 
© DAMS & IRRIGATION SYSTEMS 
© POWER PLANTS, 

© WATER SUPPLY, TREATMENT & SEWERAGE WORKS 
© BUILDINGS & INDUSTRIAL PLANTS 
• PORTS, DOCKS & JETTIES 


Ankara Headquarters 

ARYAPI Production Industry & Commerce Ltd. 

Selanik Cad 27/15 ANKARA, TURKEY 

Phone: 17 09 70/25 1 137 

Cable: ARYAPI— -Ankara, Turkey 

Telex: 43228 ARYT TR 

London Office: 

138a High Road 

London N22 6EB 

Phone: 01-881 1059 

Telex: 295168 PAZGLN G 

Istanbul Office: 

Bagdat Cad 221/5, Kadifcoy 

Istanbul, Turkey. Phone: 55 59 81 

Telex: 23324 ARYT TR 

Tripoli - Libya Office: 

P.0. Box 14978. Tripoli - Libya 

Phones: (21) 77913-4 


f 



Financial Times. Monday - May : L7^ ; 1982 


TURKEY VIII 


ECONOMY 



A new strategy aims at reducing disincentive, says William Dawkins 


Luring foreign investment 



ANKARA’S MAIN problem in 
attracting foreign investment is 
not so much in producing the 
right incentives, at which it is 
working hard, bat m reducing 
the disincentives which are 
already there. 

Superficially, Turkey’s cam- 
paign to win foreign _ invest- 
ment, which plays a major part 
in its economic stabilisation 
programme, looks as if it is 
moving in the right way. 

According to Mr Husnu 
Dogan, director of the new 
Foreign . Investment Depart- 
ment in the 25 years before 
1979. the total foreign capital 
invested in Turkey under its 
main foreign investment law 
amounted to a mere $2 28m 
f£127m). “ In 1980 my depart- 
ment gave permission for 
investments totalling another 
$97m, and last year this figure 
improved to $33 6m," be said. 
These figures all exdude petro- 
leum firms winch come under a 
separate law. Over 100 foreign 
companies received investment 
approval last year. 

However. $293xn of the 1881 
figure was in so-called non- 
guaranteed trade arrears 
(NGTAs) — unpaid Turkish lira 
debts to suppliers which have 
been made eligible for invest- 
ment in Turkey. But it is a 
sign of increasing confidence in 
Turkish investment potential 
that a flourishing market has 
grown in NGTAs. Two years 
ago, they sohl for the equiva- 
lent of 20 cents to the dollar. 
They now fetch up to 55 
cents, according to Mr Dogan. 


A change of mood in the 
embassies testifies to this grow- 
ing confidence. “A year ago, 
no one was interested, but now 
I am flooded with investment 
inquiries,” one Western com- 
mercial attache says. But most 
important, some “ pioneers " 
have become trail-blazers. 

• Otomarsan, the 12-year-old 
bus manufacturer, 36 per cent- 
owned by Daimler Benz, is 
planning a new factory to pro- 
duce 2,000 buses and -5,000 
trucks a year about 30 miles 
from its present plant in the 
industrial Istanbul suburb of 
Yesilyurt 

The plan, which represents a 
fresh investment of between 
DM 50bn and DM 80bn, is the 
company’s first venture into the 
truck business. Most of the new 
production will be exported to 
the Middle East Last year. 
Otomarsan produced ' 1,300 
buses, about five a day. under 
licence from Daintier Benz, 
which supplies engines and 
gearboxes. It exported 80 per 
cent of these. Mr Haluk 
Gonencer, in charge of market- 
ing for Otomarsan, says: “The 
Government is really trying to 
do fts best for the investor." 

• Maschinenfabrik Augsburg 
Numbers (MAN) has taken a 
40 per cent share, with Ercan 
the Turkish concern taking the 
rest, in a venture to make 7.000 
diesel engines a year at a new 
factory near Ankara, involving 
an investment of $50m. 

• Unilever, which set up a 
margarine factory in the Istan- 
bul suburb of Bakirkoy in 1952, 
is investing TL 3bn (£1 1.40m) 


Facelift for 
debt profile 


TURKEY is making a major 
attempt to shrug off its reputa- 
tion as a risky borrower, 
dangerously short of foreign 
exchange to repay its debts. It 
would prefer a reputation as a 
country able to meet its finan- 
cial obligations in an orderly 
and efficient manner. 

’ Ankara's efforts in this direc- 
tion are already paying divi- 
dends. The former pariah of 
the international lending com- 
munity has this year won two 
important credits. 

In February. Turkish Air- 
lines negotiated a syndicated 
loan totalling $76.5m (£42.6m) 
to finance the purchase of two 
Boeing 727s — the first medium- 
term credit which Turkey has 
negotiated since 1979. In April 
American Express signed a con- 
tract to take the lead in a 
syndicated 577m Euroloan for 
two leading Turkish construc- 
tion companies— the first such 
loan for private Turkish com- 
panies since the economic crisis 
reached its height in 1977. 

Although the terms are 
tough — li per cent over Libor 
(London Interbank Offered 
Rate) these loans reflect a 
major change in the past three 
years. At the same time. 
Turkey is expanding its work- 
ing relationships with banks 
and extending fts credit lines. 


State policy 


The Government’s policy is 
to build on this, concentrate 
on financing energy and export- 
oriented projects, and to 
approach the international 
markets in an orderly fashion. 
Mr Turgut Ozal. the deputy 
prime minister in charge of the 
economy, said recenUjr “ As 
our credit rating increases, 
Turkey will enter the markets 
more and more." 

All tins is a major change 
from the dark days of 1977 
when Turkey found it 
impossible to repay its debts. 
But since then, Ankara has 
achieved one of the largest debt 
reschedulings in history, com- 
pleted this year with a further 
rescheduling of $3.2bn of that 
debt. 

A result of the rescheduling 
has been a shift in the quality 
of Turkey’s debt towards the 
medium and long term, and 
away from short term. Today 
86 per cent of Turkey’s debt is 
medium and long term, com- 
pared with only 44 per cent 
five years ago. 

At the end of last year. 
Turkey owed $13.408bn in dis- 
bursed medium and long term 
debt and $2.1 1 lbn in short term 
debt, resulting in a total of 
SJ5.519bn, This figure does not 
include another $2.779bn in 
undisbursed debt Its biggest 
bilateral creditors are countries 
from the Paris-based Organisa- 
tion for Economic Co-operation 
and Development (OECD), 
which are owed $5.901bn in 
medium and long-term disbursed 
debt 


debts foil due. Repayments of 
principal and interest are pro- 
jected .to rise from $1.698bn 
this year to a peak of $2.466bn 
in 1985. 

Mr Yavuz Carter!., vice gover- 
nor of the centra] bank, is 
fairly confident that Turkey can 
shoulder this burden. He points 
out that foreign exchange earn- 
ings should increase more over 
the next three years than was 
envisaged when the reschedul- 
ing took place. For example, ex- 
ports went up by 61.6 per cent 
' last year to 54.703bn. 

Although Mr Canevi does not 
believe Turkey can sustain such 
a high rate of export growth, 
he feels it can be kept up. at 
.25 per cent or 30 per cent 
However, he Is concerned 
about Turkeys ability to finance 
the high growth rates in gross 
national product (GNP) which 
the Government seeks. 

He warns that Turkey can 
finance last year’s 4.4 per emit 
annual growth in GNP without 
strain, but echoes the recent 
OECD report on Turkey when 
he says it wall be unable to do 
so at the Government’s declared 
target, rate of 7 per cent un- 
less there is an even bigger 
increase in foreign exchange 

earnings. 

While exports may do well. 
Turkey remains dependent on 
aid. OECD and EEC countries 
have granted debt relief of 
$5.477bn and pledged a total of 
$3.123bn in balance of payments 
relief over the past three years. 
Turkey was the first country to 
receive structural adjustments 
loans from the World Bank, 
obtaining nearly $800m since 
1979. Turkey also has a three- 
year standby agreement with 
tiie International Monetary 
Fund for SDR 1.25bn (£1.98bn), 
of which SDR 760m has been 
drawn. 

But these aid sources have 
their limits. The EEC Commis- 
sion has blocked progress on a 
five-year $800m aid programme 
in protest against acts by the 
military. An OECD pledging 
session has been deferred be- 
cause of some members’ con- 
cern over political develop- 
ments. Turkey’s financing gap 
for 1982 is around $340 m, but 
this is after allowing for $2bn 
of aid. Certainly, private finance 
is now taking a. fresh look at 
Turkey and things are looking 
up. but the country is not yet 
out of the wood. 

W.D. 


to increase its annual output 
by 36.000 tonnes to 146.000 
tonnes by the end of 1984. Only 
TL I60an of the TL Urn invested 
so far is in NGTAs. Turkaye 
Bankas, Unilever's Turkish 
partner, is increasing its stake 
from 20 per cent of the capital 
to 36 per cent It had obtained 
the necessary investment 
approval but is awaiting con- 
struction permits. 

Mr Metth Yildizlar. the sub- 
sidiary’s chairman, is impressed 
with the authorities’ increas- 
ingly open attitude to foreign 
investors. But he Says: “Foreign 
investment in this country is 
not 'an easy game. It takes 
some time." ' 


12 years 


Mr Yildizlar notes that in the 
1960s it took Unilever 12 years 
to get ' permission to increase 
cts capital = from TL 50m to 
TL 75m. while last year it took 
only a few months to get the 
go-ahead for a capital increase 
from TL 223m to TL lbn. 

One of hfe criticisms of the 
present system is that not all 
investment regulations come 
under one law administered 
from the same source. He also 
feels that the Ministry of 
Finance, mainly in charge of 
tax affairs, has too much power 
over foreign investors. “Un- 
fortunately, the Ministry of 
Finance is a state within a state 
in this country." he says. 

• Other companies expanding 
in Turkey include Ciba Geigy. 
which has increased its share 
in its Turkish operations from 
TL 4m to TL lbn over the past 
two years. In banking. Citibank, 
which became the first foreign 
bank to set up in Turkey two 
years ago, has been followed by 
American Express, Bank Mellat 
of Iran, and the Bank of Credit 
and Commerce. ■ 

Manufactured goods account 
for most foreign investment in 
Turkey, but Mr Dogan lists 
tourism, agribusiness, mining, 
and oil exploration a; other 
important growth areas. There 
are ’ more than 100 foreign 
ventures operating in Turkey. 


" Looking at the potential of 
Turkey; we are just at fee 
beginning.” says Mr Dogan. 

' Ankara’s bid to make Turkey 
more ' attractive for foreign 
•investors' has taken place on 
. two’ fronts. It has undertaken 
a series of policy initiatives, 
while at fee same time showing 
a more open attitude to out- 
siders— a marked contrast from 
the insularity. 

An important part of 
Ankara’s foreign, investment 
drive was fee enacting two 
years ago of the Framework 
Decree on Foreign Capital, 
which offered wide incentives 
and set up Mr Ddgan’s depart- 
ment to speed up processing of 
applications. New investments 
can now be approved in as little 
as a week, after having taken 
up to years before. 

His department may aufeor- 
ise investments of up to 550m. 
of which between 10 per cent 
and 49 per cent must be foreign 
equity. Those who do not fit 
into feese categories apply 
direct to fee Prime Minister's 
office. 

The incentives include: 

• Up to 100 per cent, exemp- 
tion from customs duly and 
other import taxes on neces- 
sary inputs and' equipment. 

• Payment of customs duty 
and other' import taxes over 
five years 

• Subsidised medium-term 
domestic credits and short-term 
export credits 

• Retention of 50 per cent of 
export earnings, .for use in im- 
porting necessary inputs or 
■transfer to other exporters, and -. 
allocation of foreign exchange ; 
from .special quotas 

• Deduction from taxable In- 
come of an amount equal to 20 * 
per cent of export revenue 

• Tax rebates, up to 20 per 
cent of export earnings 

• Loss carry forwards, up to 
five years. 

In spite of these incentives, 
some investors still find that 
they, are hampered by liter- 
ally Byzantine Turkish bureau- 
cracy. But as Mr Dogan points 
out: “You can’t solve every- 
thing at mice. It ail takes time." 


TURKISH DEBT 


External debt service requirements 
(medium and long term only) 



Principal 

Interest • 

Total 

Year 

*m 

• 8m 

Sm 

1982 .... 

; ; 742 

956 

1,698 

1983 

902 

937 

1,839 

1984 


924 

1.963 

1985 

1.617 

849 

2,466 

1986 

1,481 

707 

2,188 

1987 

1.402 

575 

L977 

1988 

1.329 

441 

1,770 

1989 .... 

• . . L276 

308 . 

1.584 

1990 ..... 

769 

188 

957 






Source: Ministry of Finance: Central Bank. 


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ERMES achievements indicate that, 
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As another result of the re- 
scheduling, and also partly be- 
cause of increased foreign ex- 
change earnings, Turkey's debt 
service ratio (payments of prin- 
ciple and interest as a percen- 
tage of earnings from exports 
and invisibles) has steadily de- 
creased. According to fee Gov- 
ernment. this went down from 
24.2 per cent in 1979 to 22.7 
per cent in 1980, and 21,4 per 
cent last year. 

Nevertheless, fee debt servic- 
ing bill ie still steep and will 
get steeper jn three years’ time, 
when many of the rescheduled 



Turkey’s corporate bank 


TQrkiye Garanti Bankas A§. 

Capital TL Z.OOO.OOODOO.-fuifiy F^ 

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International Department • 

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c. 


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10 . 
Ga 








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Financial Times Monday May 17 1982 


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TURKEY IX 


ECONOMY 


Needs are understood better, says Anthony McDermott 

Stronger energy policy 


IN ISTIKLAL CADDESI, 
Istanbul's smartest shopping 
street, the only- lights on at 
night are signs advertising 
casinos and -night clubs. The 
shop front wndows are dark. 
The state radio and television 
has been urging listeners to 
conserve electricity. Some 
limited legislation has been 
passed to back this up, notably 
m the greater use of insulation 
of houses and shops. 

Long petrol queues have dis- 
appeared, and the dark cold 
winter two years ago lias 
become an unpleasant memory. 
The last power cuts were in the 
autumn of last year. In short, 
over the recent years and not 
before time, Turkey has 
become more energy conscious 
on both a public and private 
level. 

Turkey was notoriously slow 
to react to the rapid rise in 
world oil prices which brought 
about severe balance of pay- 
ments problems. It was equally 
slow to publicise its plight as 
a leading example of a develop- 
ing, low level oil producing 
country hit by these price rises. 

The situation is now better 
known, but the basic figures 
still bear repeating. Oil 

imports in 1973 cost a mere 
U.S. 5218m. In 1980, they 

amounted to. U.S.$3.86bn, or 
nearly 49 per cent of all 
imports. 

Situation eased 

The cost of these imports 
comfortably exceeded the value 
of all Turkey’s expons, then 
U.S.$2.91bn. Last year the 

situation eased slightly. The 
cost of oil imports was virtually 
the same, reflecting a slowdown 
in economic activity, and were 
only 43 A per cent of imports. 
They were Iks than total 
exports which * had risen to 
U.S.S4.7bn. 

Initially it was expected that 
oil imports this year might cost 
t‘.S.$ 4.3bn but the fall in world 
prices has brought some relief 
(and some i problems for 
Turkish contractors and traders 
seeking work and payments in 
the Middle East). 

Since the military takeover in 
September 1980 economic (and 
energy) policies have become 
more vigorous. The top men in 
the SEE’s dealing with this 
sector have been replaced. 
Prices have been raised five 
times since December 1980. 

In addition, priority has been . 
given in fixed capital investment 
programmes by the public 
sector to the development of 


hydro-electric and thermal 
power plants. and energy as a 
whole. In 1981. this amounted 
to TL 176.78bn, or 24.1 pea: cent 
of the whole investment pro- 
gramme. This year, the per- 
centage drops slightly to about 
23 per cent but it is still 
intended to spend TL 178,94bn. 

Turkey’s oil supplies for this 
year are assured. At least, some 
of the hydroprojects — a long 
under-used source of power- 
are coming on stream. Long- 
term planning for energy, a 
long-standing disaster area, has 
begun to become more coherent. 

Turkey is — and is, by all 
accounts, likely to remain — in. 
the ranks of minor oil produc- 
ers. Local peak production was 
reached in 1970 with 3.5m 
tonnes (about 70,000 barrels/ 
day). By 2980, this had fallen 
to 2.32m tonnes (46,400 b/d), 
the bulk coming from the opera- 
tions of Shell and TP AO, the 
state oil organisation. 

Last year production rose 
slightly to 2.36m tonnes (47,200 
b/d). and based on figures for 
the first three months of this 
year may be just over the 48.000. 
b/d mark,, around one-sixth 
of consumption. 

The Turkish Government has 
tried to lure foreign companies 
but the fact remains that most 
companies are reluctant to 
invest in a high risk area — and 
the geology of the main pro- 
ducing part of the country is 
termed very difficult and frac- 
tured. 

As in previous years, a series 
of govermnent-to-government 
oil deals have been set up. t For 
the moment the temptation to 
return to the spot market is 
being resisted.) The deals 
arranged over the past two 
years are (see table but as the 
starting dates of the year-long 
contracts vary they must be 
taken as approximate). 

This year’s agreements are 
somewhat more obscure, and not 
helped by the politicking of the 
Iran-Iraq war. But country-by- 
country the following offers have 
been made: — . 

Iraq: All Turkey's needs, in 
effect deliveries of about 5m 
tonnes. 

Iran: 4m tonnes (probably 
nearer half that); 

Libya: 2.5m tonnes, although 
this could reach 3.5m tonnes 
(the other suppliers — such as 
Saudi Arabia. Kuwait and the 
UAE — have not been forth- 
coming in releasing details of 
their supplies). 

Turkey gains over 590m 
annually from its position 


as an alternative writ for 
petroleum products from the 
Gulf war zone of the Iran-Iraq 
war. 

There has also been discus- 
sion, of three pipeline links with 
Iran: 

• An oil pipeline between 
1981 amounted to 24.9bn kwh 
Mersin. 

• A natural gasline from Iran 
. to Hopa on the Black Sea. 

• A natural gasline along a 
route yet to be decided, link- 
ing Iran with Europe. 

In the longer term, the oil 
issue should be a minor issue, 
even though the World Bank 
has estimated that oil imports 
in 1985 could be U.S.$6.59bn, 
still constituting 47 per cent of 
imports, and compared with 
exports Chen worth US$9.1 bn. 

Turkey will have to face two 
interrelated issues. The .first is 
that currently Turkey's per 
caput consumption, with only 70 
per cent of its villages electri- 
fied. is the. lowest in Europe: 
545 kwh /year. Generation in 
1981 amounted to 24.9bn kwh 
(plus 1.6m kwh imported from 
the Soviet Union and Bulgaria). 
This marked a rise of 7 per cent 
compared with an average of 
just over 3 per cent in the 
previous two years. Even so, 
according to TEK, the state 
electrical authority, there was a 
shortfall against demand of 
l.Tbn kwh. 

Second issue 

The second issue is to reshape 
The pattern of long-term sup- 
plies of energy. In 1974, fuel 
oil provided 46 per cent of 
electrical power, hydro 25 per 
cent, lignite IS per cent and 
coal 11 per cent. In 1981 the 
balance had shifted to: 50.7 per 
cent from hydros 24.4 per cent 
from lignite. 22.4 per cent from 
fuel oil and diesel, and 3.5 per 
cent from coal. 


REPORTED ACTUAL 
DELIVERIES 

tonnes (m) 


Iran 

Iraq 

Libya 

Soviet Union 
(via Kuwait) 
UAE 
Algeria 
Saudi Arabia 
.Kuwait 
Total 


1980 1981 

3.4 US 

5 5.6 

2 2.6 

1.3 — 

0.35 — 

— 6JL 

— 1.5 

— 0.03 

12.05 11.63 


At present, Turkey forecasts 
that electricity demand will 
reach 212bp kwh by the year 
2000. DSI, the state hydraulic 
works, in a report, calculated 
that this could be covered 38 per 
cent by hydro generation, 35 per 
cent thermal sources, and 27 
.per cent by nuclear power (the 
Turkish atomic energy commis- 
sion has calculated differently: 
56.7 per cent for hydro. 27.1 per 
cent for fossil fuels, and 16 per 
cent for nuclear sources). 

If hydropower provides one 
source in tbe long term of alle- 
viation of Turkey’s energy 
problems, lignite offers another. 

The centre-piece of this 
aspect of Turkey's energy future 
is the Afsin-Elbistan plant 
between Kayseri and M&latys in 
south-east Turkey but it* has 
been a project dogged by 
disaster. 

Costs for the whole project 
have multiplied tenfold to 
something approaching $l6bn. 
Even then n is probable that 
only three out nf the four tur- 
bines will function. The nuclear 
option has run into trouble 
over finance. 

. Like most other countries. 1 
Turkey has also considered the i 
nuclear option for bridging the j 
gap between electrical demand , 
and supply. j 


Slow progress 
on Urfa dam 


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THE URFA TUNNEL, which, 
one day may be the largest 
; tunnel for irrigation in the 

1 world, begins on a hillside in 
the Euphrates valley and ends 
in a muddy field scattered with 
poppies. 

' Between these two points, 
about 150 metres under the 
hiJJs north of Urfa. gangs of 
Turkish workers have drilled and 
concreted nearly five kilometres 
of double tunnel in a gloomy 
limbo of flaking limestone and 
dust. As they began work in 
1977, and the tunnel is to be 
over 24 km long, this is not, as 
! they say. very good. 

The dam that will fill tbe 
j reservoir that will send the 
water through the tunnel is ro 
be built some 80 km further 
east, at a point where the 
Euphrates valley widens to a 
shallow reach before entering 
a gorge. In this lovely and 
remote place, with Its gypsies, 
foxes and brilliant songbirds, it 
is bard to imagine a rock-filled 
dam 184 metres high and nearly 

2 km across but this Is what the 
engineers, now digging a 
diversion tunnel, say it will be. 

Tbey also say that the dam 
will generate 8bn kilowatt hours 
of power a year and send enough 
.water through the tunnel to 
irrigate 300,000 hectares of 
steppeiand to feed and clothe 
the Middle East The Ataturk 
dam and hydroelectric plant as 
its reverential name suggests, is 
the most important exercise is 
public works in modern Turkey. 

However, to build the dam 
and power plant will require a 
colossal amount of foreign 
exchange, which nobody is will- 
ing to compute, but would 
certainly not be less than 
$3bn. Shortage of hard currency 
was one of a host of factors 
which has held up progress on 
the Urfa tunnel: the Bogus con- 
struction company was released 
from its contract In 1979, after 
speeding some T1 3.5bn, and 
the work has been passed on to 
tbe Akpinar concern. Where- 
the foreign exchange is to come 
from is anybodys' guess. Dam 
projects on shared rivers are 
political minefields and the 
World Bank. which only 
approved $I20m for the sister 
Karakaya dam upstream on 
the eighth appraisal, is thought 
highly unlikely to involve Itself, 
now that Iraq (and Syria) face 
lasing lDbs cubic metres of 
water, a third of the flow to the 
farmers of south-eastern Turkey. 

A number of wild schemes 
are being discussed, including 
the sale of stock to Turkish 
workers or even a withholding 
tax on profits generated by 
Turkish .construction companies 
overseas. But the dam will be 
built, the engineers say, and 

both general Kenan Evren and 
the deputy prime minister for 
economic affairs, Mr Turgut 
Oral, appear to be strongly in 
favour of the project 

Tbe DSI. Turkey water 
authority, cl aims that the 
Euphrates valley contains a 
quarter of the country’s hydro- 
electric capacity of lOObn kilo- 
watt/hours per year. Upstream 
of the Ataturk site, the Keban 
dam and its immense reservoir, 
which began operating in 1974. 
is to be extended to produce 


6.2bn kwh a year while the 
Karakaya dam in the middle 
should eventually ' start pro- 
ducing the first volumes, of its 
7.5bn kwh a year in the spring 
of 1986, although there remains 
here too a financing gap of 
$130ra. 

Turkey has been relatively 
successful in replacing costly 
imports of energy, with some 
20 per cent of actual demand of 
25bn kwh a year now met from 
hydroeJectririty but demand and 
supply are now only just in 
balance. 

Funding problem 

The question must be 1 
whether Turkey can afford to 
commit scarce foreign _ and 
local currency to a project 
which will only start producing 
a return in Ihe 1990s when 
some 18 other power projects 
have been initiated and must 
compete for funds. 

Less emphasis . is placed 
on the irrigation plan, which 
will Dot become actual before 
the next century, bur this too 
will change the face of Turkey's 
most backward region for it will 
permit the great open steppes 
of Harrah. which now 
supports only a spring cereal 
crop, to be used for all year 
cultivation of cereals and cotton. 
A secondary tunnel and canal 
system, to begin at the Kurdish 
town of Hilvan, could open up 
a further 400.000 hectares. “It 
will be another California,” Mr 
Ibrahim Tasltin, the DSI project 
manager says infectiously. 

As for the financing problem, 
the DSI’s most realistic hope is 
pinned on supplier credits such 
as the Italian contractor at 
Karakaya brought with it. The 
Swiss Government is said to be 
ready in principle to provide a 
credit towards tbe $650m cost of 
the Swiss turbines but that 
leaves the best part of $lbn for 
the earthmoving equipment for 
the dam proper. If tbe dam is 
started this year, it could be 
completed by 1990 and Dogus is 
forging ahead with the T1 5.6bn 
diversion channel — presumably 
to make the cancellation of the 
project less palatable. 

The diplomatic problem with 
Syria is also proving tricky in 
the extreme. Turkey has correct 
relations with Syria and rela- 
tively warm ties with Iraq but 
the two champions of Arab 
Baath socialism are always at 
each other’s throats. Iraq's 
traditional irrigation system 
with flood water was doomed 
when Keban was bttik, although 
Baghdad has been constantly 
reassured of a regular flow of up 
to 900 cu metres a- second and 
no less than 450 cu metres a 
second. 

But Syria has since then 
erected the vast Tabhka dam 
beyond Aleppo. Once water be- 
gins being drawn off. the 
Ataturk dam will be one further 
restriction on the flow, and 
Syria will be in an even 
stronger position to tamper with 
what remains which could 
precipitate a catastrophe in 
Iraq on the scale of the Mongol 
destruction of the irrigation 
system in 1252, 

James Buchan 




.... 

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Head Office: Ankara 

Foreign Department: f 

P.O. Box 241 Kerakoy s Istanbul, 

Telex: 24x69 tsex tr 

Cable: FOREbiTAB- Istanbul 


H V 


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Financial Times Monday, May 17"19S2 


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TURKEY X 


Leslie Colitt describes life for a Turkish family in West Berlin 


Bitter times 
for workers 

abroad 


14 WHAT DW we do to the 
Germans to make them hate 
os so much?” Ali Yiicelen 
wondered aloud. He pulled 
a cord releasing the bneket- 
load of' ■ building wastes 
strapped to his back and the 
cloud . of white dust set him 
coughing. 

All earns DM 2,300 (£550) 
a month, more than ten times 
what he would make in 
Turkey. However, like many 
Turks in Germany, he Is 
Incensed by the s crawlings of 
“Tfirken raus ^ (Turks out) 
which he sees on house walls. 

It was much better when he 
came to West Berlin 12 years 
ago, Ali said. His German 
colleagues at work were 
friendlier and his neighbours 
occasionally greeted him. 
Hardly any Germans remain 
in the city-owned tenement 
bn tiding in Tiergarten dis- 
trict, where Ali lives with his 
wife and three children. 

The rapid growth of the 
Turkish population in West 
Berlin to 140,000 or 12 per 
cent of the city's inhabitants 
undoubtedly has much to do 
with the worsening relations 
between Germans and Turks. 


Staying 


Alt said that he has con- 
sidered returning to Turkey 
now that the German authori- 
ties plan to pay foreign 
workers their accumulated 
pension and unemployment 
benefits if they return home. 
He would be well-to-do In 
Turkey . with that kind of 
money. However, after spend- 
ing a three-week holiday in 
his village last year, he 
decided he had been In 
Germany too long to return. 

Two of Ah’s children are 
In school and the eldest boy 
has been trying to get work 
for the past half year. He 
left school at 15, and was not 
aficppted for . an apprentice- 
ship because of his poor 
spoken and written German. 
The boy came to Berlin at the 
age of 12,. when All called for 
his wife and- children in 


Turkey to join him- in Berlin. 
His unemployed son is far 
more bitter _ about the 
Germans than Ali. 

Ihe two young children 
attend -a Koran school in the 
afternoon, which Ali says 
keeps them off the street. 
These religious schools are 
widely criticised In Germany 
for Instilling anti-German 
sentiments in the pupils. One 
German Social Democrat MP 
at Hanover said the schools 
with their militant Islamic 
instruction should be 
abolished in West Germany, 
just as they were banned in 
Turkey. Aboat 20 per cent 
of the Turkish children in 
West Germany attend Koran 
schools, which are run by. 
members of the rabidly anti- 
Western Islamic Federation, 

Although Ali could qualify 
to become a German citizen, 
he laughed derisively,, when 
asked if he would apply. 
Turkey lifted its previous 
objections to its citizens 
becoming Germans but even 
fewer Turks are interested in 
proving thbir cultural and 
linguistic affinity to Germany 
than is the case with Yugo- 
slavs or Greeks. All's child- 
ren may choose to become 
Germans, but Mr tfzcan 
Ay an oglu, a political econo- 
mist in Berlin, said it would 
not prevent the second 
generation of - Turks in Ger- 
many from 'becoming more 
radical than their elders. 

41 Their parents compare 
Germany with home and thus 
are able to stand it here. But 
their children, will have no 
other basis for comparison 
than Germany,'* he noted. 

The German Government 
and the Lander have concen- 
trated their spending in 
recent years on the young 
generation of Turks. Some 
3,000 Turkish teenagers in 
West Berlin are taking special 
courses to gain job skills. 
However, they will remain un- 
skilled workers by German 
definition and, with rising 
unemployment stand little 
chance of finding jobs. 

Mi 4 Vital* Akpenar, a Pro- 



A Turkish grocery in . the Tiergarten district of Berlin 


TURKS ABROAD 

(000s end 1901) 

Workers Families 


Total 


Western Europe 


770. 

1,115 

1,885 

Middle East 


150 

9 

159 



15 

17 

32 

Total 


935 

1,141 

2,076 


Source: West Europe and regional totals official Turidsh 
figures. Others Financial Times estimates. 

EMIGRANTS' REMITTANCES, $m 

1978 1979 1980 1981 1982f 

983 1,694 2.071 . 2.490 . 2,850 

Source: Turkish Ministry of Finance, t Forecast. 


lessor of Edneation at West 
Berlin’s Free University, said 
the German authorities made 
the mistake of dying to get 
Turkish children “to think 
and act tike German child- 
ren:" This was simply not 
possible, he said. 44 The walls 
of the ghetto are growing 
higher," he added. 

. Ali said that he was not 
really interested in Turidsh 
politics, hut that he was glad 
the terrorist killings were 
over. His largely apolitical 
views are typical of Turkish 
workers in West Germany, 
who are far more interested 
in the economic situation in 


Turkey. This is because they 
might consider -a return home. 
If the Turkish economy were 
to improve significantly. 

In the first few months of 
this year, some 20 Turidsh 
families a day from West 
Germany were said to have 
returned to Turkey, which 
was double the rate of last 
year. 

The Turkish Government 
however, cannot be interested 
in any large-scale return of 
Its workers in West Germany, 
who last year transferred 
DM 3.5bn to their relatives 
In Turkey. 

The West German states 


are preparing- to adopt a 
joint policy regarding the 
entry of Turkish family mem- 
bers into West Germany. 
This will limit entry of Turks 
to the wives or husbands of 
Turks living here, as well as 
to children under 18 years 
of age. 

In West Berlin, the city 
government does not permit 
Turks to settle in three inner- 
city districts, where the 
Turkish population ap- 
proached the 50 per cent 
mark. The Turks there, in 
the shadow of the Berlin 
Wall, form an exotic enclave, 
separating the Germans in 
East and West Berlin. They 
meet with as little compre- 
hension from the East Ger- 
mans they encounter when 
visiting East Berlin as they 
do from most West Berliners. 

Ali is resigned to paying 
nearly DM 350 for a three- 
room cold-water flat with 
oven heating' and a toilet one 
flight downstairs. Although 
his wife works full time as 
a seamstress, she takes 
enormous pride in maintain- 
ing a spotless flat in the 
middle of their decaying sur- 
roundings. What embittered 
All more than anything else 
recently was the word 
44 Turkensan " (Turkish 
swine) scrawled in large 
letters on the walls of his 
tenement botidlug. 






If you want to deal successfully in Turkey 
deal with the Turkish bank that has its own success stoiy. 
Since 1980 the Istanbul Bank has increased 
its deposits tenfold (from 3.5 billion TL to 36 billion TL) 
and is now one of the largest of Turkey’s private banks 
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Hints of the Orient Express 



Travel 

Flights. Flights in and out of 
Turkey can be heavily booked. 
Those inside the country are 
frequent, but you can lose your 
seat if you arrive less than 20 
minutes before departure time. 
Train. The sleeper 'between 
Ankara and Istanbul may only 
hint at the opulence of the 
Orient Express but makes a 
pleasant change. 

Taxis. Taxis may have meters 
but they never work. At the 
airports there are counters 
where travellers can buy ''tic- 
kets" for the official Tate to 
his destination. This should 
help one pitch other fares. Taxis 
from hotels are more expensive 
Than others, though doormen 
have fare lists. 

Telephone and telex 

Direct dialling abroad is 
available from most main 
Istanbul hotel rooms and 
Ankara hotel switchboards. 

Sometimes it is necessary to go 
Jhrough the international 
exchange which causes average 
delays of 30-60 minutes. Telex 
lines are usually good, hut may 
break down for up to 24 hours. 
New telephones and telexes may 
take months to install. Com- 
munications are better in the 
morning and late in the evening. 
Most main Ankara hotel rooms 




do not even have dialling facili- 
ties for local calls. 

Ankara 

Hotels: The Grand Ankara 
Hotel (telephone 171106, telex 
42398) remains tile best hotel 
in the city — and a useful place 
to meet other businessmen. 
Other centrally placed and clean 
hotels include: Dedeman 

(171100, 42408), MoJa (183140. 
42294) and Tunali (278100, 
42142). But eat out. 

Bestaurants: The Kristal (tele- 
phone 171260) is probably the 
best restaurant in lown, offer- 
ing Turkish and European food. 
Prices are relatively cheap, 
with a meal and wine far two 
costing around £16. Ataturk 
Orman Ciftligi Lokantasi 
(233230) has excellent Turkish 
cuisine 20 pleasant minutes 
drive from lown at A ta Turk’s 
farm. 

Surprisingly, fish is to be 
recommended in Ankara. Other 
restaurants for business lunches 
or dinners are itie RV <270365), 
Krai CifUigi (275087). Yakamoz 
(183586 — also offering violins). 
Liman (302725) and Rihtim 
(272432). 

Business contacts: The Ankara 
Chamber of Commerce (head 
Mr Turgut llhan telephone 
243263) can be helpful. 
Ministers and civil servants are 
relatively accessible as, in 
particular, is the Foreign 
Capital - Department of the 
Prime Ministry, head Mr Husnu 
Dugan (298421). Mr Zekeriya 
Yildirim (124949) is head of 
the foreign exchange depart- 
ment of the Central Bank. The 
major countries have useful 
commercial attaches. The EEC 
has a well-informed office, 
current head Mr Robert Cnx 
(276145/6). 

Pastimes: Ankara ’ is neither 
interesting nor attractive. But 
the Museum of Anatolian 
Civilisations is a must. The 
mausoleum where Ataturk, 
founder of modem Turkey, is 
buried is worth seeing to gauge 
The feelings he arouses. 


Istanbul 

Hotels: There are three excel- 
lent centrally located hotels: 
The Hiiton (telephone 467050, 
telex 22379). Marmara Etap 
(448850, 24137) and Sheraton 
(489000. 22729). Businessmen 
can arrange discounts through 
their companies. Those with 
time on their side will enjoy 
slaying up the - Bosphorus: 
Grand Tarabya (621000, 26203) 
and Yenikoy Carlton (621020, 
26260). 

Smaller hotels include the 
Elap and Pera Pa las (452230, 
24152) where Agatha Christie 
and Kim Philby stayed. . 
Restaurants: Istanbul - offers a 
large number of excellent 
restaurants. The city is famous 
for its fish. Newcomers are 
advised to consult friends (or 
waiters) as to which fish to eat 
as fish is seasonal. Tarabya 
offers a number of Bosphorous- 
side fish restaurants of which 
Facyo is noteworthy. The 
restaurant of the Divan Hotel 
(telephone 464012) is one of 
the best in town and ideal for 


business lunches. Cam dan is the 
finest and probably most expen- 
sive restaurant and bar - in 
town. It also provides after 
dinner disco music. Abdullah 
(telephone 636406) and Sureyya 
(telephone 635576) have 
delicious food and are in the top 
category- 

pastimes: Istanbul, astride two 
continents, and seat of the Byz- 
antine and Ottoman empires, is 
one of the world's eternal cities. 
The Blue Mosque, Topkapi Pal- 
ace, Santa Sophia Cburch. 
Kariye Mosque and Dolmabahce 
Palace are among the belter 
known of the dozens of historic 
places of interest and museums. 
A laxi ride across the Bns- 
phorous Bridge is recommended, 
particularly memorable is a 
leisurely boat trip up The Bos- 
phorous or to the lovely Princes’ 
Islands where Trotsky once 
lived. The covered market in 
old Istanbul is well worth a 
visit 

Mr Norman Covey (451793 1 
formerly of the Chamber and 
Financial Times can also assist. 

David Tonge 





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Financial Times Monday May 17 1982 

TURKEY XI 




POLITICS 




?'V i 


<P& •» r 


2- & 

<5*33! 

■P" • O 

■* 4 . ' r <*, 



The generals v the politicians 


The generals have 
started a root-and- 
branch reform of: , 
political life to prevent 
a return to the chaos 
of the past Here and 
overleaf are some of 
the problems they face. 



Ismail Besikci 

Writer who 
upsets the 
. generals 

ISMAIL BESIKCI is one of the 
mildest Turks around, soft- 
spoken and, when at home, 
totally dwarfed by a rubber 
plant three limes his size. 
But. he disturbs the generals 
so much that a letter he wrote 
recently while in prison has 
just resulted in his being 
sentenced again, for 10 years. 
The letter. . to the Swiss 
Writers' Federation, was 
never published. 

It is now 14 years since he was 
first brought before the 
courts, and always the charge 
. is the same. That he is trying 
to divide the nation by foster- 
ing separatism. In other 
words that he has been 
stirring up the country's 6-7m 
Kurds. 

In 1868 his first detractor worte: 
“ He does not accept that the 
Kurds are of Turkish origin 
and became Kurdish over 
time." To this extent Mr 
Besikri. a former academic 
who has never done more 


UNLIKE OLD soldiers, old 
politicians do not fade away. 
The generals’ plan is to 
eliminate 'the crop of poli- 
ticians who ran the country 
before the takeover, demolish 
the political parties from 
which, they sprang, and open ' 
the way for a new generation . 
of politicians. 

. “Even at times when we 
needed national unity and. 
togetherness more than at any ; 
other time they almost- 
encouraged polarisation . and 
disunity,” said General Kenan 
Evren, the head of slate and 
chief of staff, on the firsi day 
of the coup, putting the blame 
for the near civil war condi- 
tions of the pre-coup period 
on the politicians. 

** Instead of getting to- 
gether to extinguish the fire, 
cither knowingly or for poli- 
tical gains, they poured gaso- 
line on the fire and tried to 
create a holocaust for the 
sake of coming to power.”' 

The generals proceeded to 
take many steps to emascu- 
late the, politicians they 
ousted and ensure that they 
remained that way. Parlia- 
ment was dissolved and all 
political parties abolished. 
A number of former party 
leaders and members of 
parliament are in jail. Former 
politicians risk stiff jail 
sentences if they make public 
statements on the “ past, pre- 
sent and future” status of 
Turkey- Political activity of 
any kind, at any level. Is for- 
bidden to all. The press is 
muzzled. 

Some 13 months after the 
coop of September 1980. when 
he dissolved all of the 
country's political parties. 
General Evren promised that 
he would. ’* definitely ” estab- 
lish a democratic parlia- 
mentary system based on poli- 



' 








On friai: former Prime Ministers Suleyman Demirel and (right) Bulent Ecerit 


tica! parties. “But not with 
these present parties,” he 
said. “Just as a house built 
with the nibble . of a 
demolished house Is bound to 
collapse, a democracy which 
is hnilt on the parties which 
brought Turkey to September 
12 (the coup) is destined to 
collapse as welL" 

An as yet unspecified num- 
ber of former politicians will 
be barred by the new constitu- 
tion-expected to he sub- 
mitted to a referendum by 
November — from entering the 
new parliament for at' least 
one term. 

Mr Suleyman Demirel and 
Mr Boieut Ecevit, the former 
prime' ministers, as well as 
party leaders like Mr 
Necmettin Erbakan and Mr 
Alaprslan Turkes are virtually 
certain to he stripped of their 
political rights. 

Apart from a new constitu- 
tion which, in the words of 
General Evren. " will be 
dosed to Communism. 


Trials without 
dignity 

DO NOT LOOK for drama in a In fact, Col Turkes is not 
Turkish military courtroom, being bandied with particular 
The major trials of the political clemency in his imprisonment 
figures and trades unionists while there have already been 
active before the military take- one or two executions of con- 
over in September 1980 have victed terrorists on the extreme 
gone on so long that even those right. One of the NAP lawyers 


than write, is being found gone on so long that even those right. One of the NAP lawyers 
guilty for his unbudging con- defendants facing the ultimate believes that while Col Turkes 
viction in ideas which are penalty seem to have lost in- j S under no great risk, some of 
prevalent abroad. terest. • the defendants may be executed. 

The Kurdish language is of a The various trials of Mr 
different origin to Turkish. Near farce ' 

Most historians believe the 

Kurds, who claim to be requested for the 52 As a orocess. the trial was 

descendants of the Medes, 
were fighting Assyria, 


the defendants may be executed. 


Near farce 

As a process, the trial was 


leaders of the DISK, the con- near fa rce , one by one young 
federation of revolutionary men came to the Bar, denied 


Sumaria id Babylon mil- ^ades unions, continue to excite ^eir origilial statements made 

forth from Central ^ sli - fV SSSSS C&WWjVS 

However, one Turkish prosecu- exasperated with the train of th ® **., aT i Jl down * <^1 


tor has insisted they are well-meaning delegations fi 
“mountain Turks” whose Europe attending the trials, 
name comes from the crunch What seems dear is t 
their feet make walking on General Kenan Evren and 
snow. Others consider them colleagues will go to so 


the “ frateili perduti." lost lengths to justify their action in 
brothers, of the Turks. taking power and to ensure no 


What seems dear is thet of fl, e ^me. although whether 
General Kenan Ewbi rad his from boredom or sickness it 
colleagues will go to some w ard te »7 

lengths “ justify their action in In “,3^® pai ^ of (he camp. 


interviews to the foreign Press. 
The trial, now adjourned, was 


n * j TnnOp * 70 of lho5e h ^?, e Abdullah Basturk, its former 

David I onge death sentence are out on bail. secret ary general, face the 

T death sentence for allegedly 


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attempting to set up a dictator- 
ship of the proletariat. A 53rd, 
Mr Ahmet Isvan, a former 
mayor of Istanbul, could also 
face charges related to DISK 
activities. 

This is the most unpleasant 
of the Turkish trials. The 
defendants allege grave torture. 
The lawyers have been harras- 
sed and take more seriously 
than their colleagues the ban 
on talking to the Press. The 
arrest earlier this year of Mr 
Orhan Apaydin. head of the 
Istanbul Bar Association, is 
generally considered to be 
related to his role as chief DISK 
defence lawyer although the 
grounds announced were other- 
wise. 

The officer presiding has a 
hectoring manner, uses' the 
insulting second person singular 
form, and ensures that there 
is no speechifying. A whole day 
was recently spent arguing over 
what sort of struggle DISK was 
waging: Economic and demo- 
cratic. Mr Basturk insisted. 
Socialist Or worse, the president 
kept, on repeating, while the 
stenographer examined her 
finger nails. 

Nobody expects the execu- 
tions to be carried out. Some 
Istanbul businessmen would 
agree with an auto industry 
executive who said: ’'They are 
traitors, they deserve to hang. 
But this basically absurd trial 
could well provide a verdict 
which' will be used to justify 
restricting trades union activity 
in Turkey, 

James Buchan 


Fascism and currents directed 
at creating a theocratic state " 
new laws will be written gov- 
erning elections and political 
parties. The legislation is 
being prepared by an 
appointed consultative 

assembly. 

The generals announced 
that democracy would be res- 
tored by the spring of 1984 .at 
the latest- 

It is clear that the 
generals want to turn a new 
leaf. But whether they will 
bo able to or not is a moot 
point because there are many 
people— die majority of them, 
former politicians — sitting on 
the book. 

Many former politicians 
are. almost without any doubt, 
greatly to blame for Turkey's 
near collapse in die two years 
before the coup. But mea 
culpa is a term which does 
not exist in the Turkish 
political vocabulary. 

Mr Demirel is behaving as 
if he were In the opposition. 
His Justice Party Is no longer 
officially in existence but he 
still runs it with an iron fist 
through Ills former Cabinet 
ministers and provincial 
officials. His large office on 


the first floor or bis house in 
Ankara is always crowded and 
his telephone rings 
constantly. 

Twice ousted from power 
by the generals — the first was . 
in 1971— Mr DemireJ is the 
embodiment of the politician 
who Jean Paul Sartre, 
the French philosopher, 
described as the kind who 
can leave politics only in a 
coffin. He speaks freely In 
private but has not made one 
single public utterance. 
Looking 'aim and timeless 
like a god of the Far East, he 
seems to believe in the merit 
of good timing and to realise 
that if he spoke now not 
many people would listen 
either in Turkey or abroad. 

The impnlslve Mr Ecevit is 
exactly the opposite. Both in 
public and in private be 
began to attack the 
generals as soon as he was 
released from exile one 
month after the coup. 
He has spent two months in 
jail and is likely to spend 
many more for Interview's he 
gave to foreign newsmen. 

But his Social Democratic 
Republican Peoples . Party 
(RPP) has more or less dis- 


integrated. Mr Ecevifs- tele- 
phone never rings because It 
Is permanently off the hook, 
except for the times he wants 
to use it to make outside 
calls. It appears tha t he has 
chosen the path of martyrdom. 

There are many former 
prominent members of the 
RPP vying for supremacy — a - 
rather curious battle by 
people without political rights 
fighting for the leadership 
of a party which no longer 
exists. 

Hr Necmettin Erbakan, the 
leader of the pro-Islamic 
movement, spent several 
months in jail. He now lives 
in Ankara, praying and fast- 
ing, while the trial against 
him and his colleagues slowly 
proceeds. He does not see the 
press. 

Mr Alparsian Turkes, the 
formidable leader of the 
ultra right-wing Nationalist 
Action Party, has been in jail 
since the coup. He is on 
trial for his life, along with 
219 others from his party, an 
charges of staging a civil 
war to create a Fascist 
dictatorship. He too does 
not seem to have given up. 
He has written several letters 
to General Evren asking that 
the charges be dropped and 
emphasising that he and the 
general share the Same views. 

The Turks have been 
through all this before. After 
the army’s first coup in 1960, 
Prime Minister Adrian Men- 
deres and two of his ministers 
were hanged and his 
followers in parliament jailed 
and stripped of their rights. 

In retrospect both seem 
futile: the MPs got their 
rights back and those who 
had In the meantime replaced 
them were not, at least in 
the eyes of the army, appar- 
ently more capable since they 
too were ousted. 

But then generals have got 
the guns and whatever they 
say will go. 

Metin Munir 


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appears to oe mn&mwv the cool major presiding over 
exasperated with the train of trial, and sat down. Col 
well-meaning delegations from ^ Ms hair died black and 
Europe attending the tnals. gieek as sable, dozed for much 


u 


1 







taking power and to ensure no Mr former chairman of 

repetition of the chaos and .u banned 'Renufalican Peonies 


The generals' anxiety about repcuuon w uc the banned Republican Peoples 

1 Kurdish unreft is evident lo ™ lence when ' h V *eUnamsh Part7 , l5 facin / 6 t0 M 
anyone who visits the The Mamak military base out- imprisonment for allegedly con- 
country's south-east. The area sid e aSs Icwfe Uke Vdown- t ” ve “ i “S notary decree 52, 
is dusty, impoverished and a t he el but over 2000 £ hlch ba J?* fo ™ er P^ticians 

feudal. For long years before "gg detained there £°m making statements about 

the 1980 coup there had been g tfv£in* rigour. ggj 

a virtual peasants revolt lnside a specially built court- 

under way. The Kurds form room. Colonel Alpaslan Turkes 1 n 

the major element of the aiK j ove r 200 members of bis TJjSJI? 'with 

population in the area and extreme right-wing Nationalist ristora^nd^ouraalSfr d & 

the generals have seized on Action Party are standing trial ^ w^frast Te trial 

this fact and on the way an foP attempting to subvert the b £- < 5SKJ ."SwtaStSS 
Eastern European radio constitution, set up a Fascist S\evonH the^Lnbill ?S 

station has been fanning dictatorship and for several gjj* “seems desismM to 

Kurdish flames. hundred murders. In all, 585 ££ 

One former Minister is in people associated with the NAP d'etat^and Ihe^more or less 

prison for merely statin*; are iein* tried. 220 of them fpr So n “nan ^^th° t ^ 

“ There are Kurds m Turkey, their lives b ^ return to civilian 

I am a Kurd.” Mr Besikci. But amid the rows of lumpy 

whose rigorously documented young men. with pnson yew- union federation, Turkey's 

but polemical works cuts and P“jcbed pnsoa second largest, has already been 

challenge Ankara’s orthodoxs- there are many empty spaces and some of its 

suffers the same fate. Like for a sizeable proportion have propertv sequestered. All 52 of 
him, his works are banned. already been released and at t j, e defendants, including Mr 

least 70 those lacmg toe Ai)du]lah BastU rk, its former 


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TURKEY XH 


Fi na ncial Times Monday May IT ,1982 

POLITICS 


Uneasy peace on 
the labour front 


iFTM£ 


"TURGUT OZAL' has only one 
policy— squeezing the stomachs 
of the workers.” This sort of 
attack on' the architect of Ihe 
Government’s economic policies 
has long been heard in private. 
It was doubly surprising to see 
it appear in public at the end 
of mouth. 

Firstly because most news- 
papers printed the charge, and 
secondly because the words 
were those of Mr Ibrahim 
Denizen er, chairman of Turk Is, 
the only labour confederation 
which the generals left in 
operation and a body which 
since the coup has been noted 
for its circumspection. 

To some extent Mr DenizcieT 
may liave been jockeying for 
position before this month’s 
congress of Turk Is. Yet one 
of the undeniable features of 
recent years is how wage 
earners have lost out: 

• Between 1977 and 1979 the 
share of wages and salaries in 
noh-agri cultural income fell 
from 47.8 to 33.8 per cent, 
according to statistics cited in 
a memorandum from Turk Is to 
the Government. Later figures 
are not available. 

• Between -1977 and 19S0 the 
real wages of unionised labour 
fell by 22 per cent according to 
Turk Is’s memorandum and by 
44 per cent according to social 
security figures. 

Since then the banning ot 
strikes and collective bargain- 
ing has resulted in. at least a 
further 10-15 per cent fall in 
real wages, according to labour 
experts. A further measure of 
living standards given by the 
head of the Istanbul Railway 
Workers’ Union has recently 
been cited in the press: 

• In February 1982 the many 
non-uni on ised workers on the 
minimum wage had to work 73 
minutes to buy a kilo of bread, 
compared with 44 minutes in 
1963. Again in 1982 they would 
have to work 14 hours and 12 
minutes for a kilo of meat, com- 
pared with six hours and 17 
minutes, in 1963. 

It is a comment on govern- 
ment policy that . statistics in 
this area remain inadequate and 
certainly the arguments above 
may overstate the extent wage 
and salary earners have suffered. 
For Instance, workers’ fringe 
benefits which were rising 
rapidly until September 1980 
are not included In the real 
wage comparisons above. 
Equally, the net result of recent 
tax and pay" pattern changes 
may slightly mitigate the trend- 
against labour, but the drift of 
events is undeniable. 

, What it means is, of course, a 
different matter. With around 
3m unemployed, some would 
agree with the employers* con- 
federation which last month 
argued that those with Jobs 
were a privileged minority. 
Others would argue that 
workers were overpaid. Yet 
others might say thal rights 
such as severance pay had 
became totally excessive — 
though this last claim needs set- 


ting in the context of the state’s 
own weakness in the field of 
unemployment benefit. 

The counter-argument is 
usually some variation on the 
claim voiced by Mr Bulent 
Ecevit, the former Prime 
Minister, that the austerity 
policies launched in January 
1980 were intended to cut 
workers’ living standards and 
needed the bayonet for success. 

None of these is completely 
defensible. For instance, infla- 
tion before 1980 app.ears to have 
hit real wages more than the 
austerity package and banning 
of strikes have since. But now 
the Government is making wage 
control an integral part of its 
anti-inflationary package, which, 
with fhe continued crack down 
on trades union activity, is 
further demoralising an already 
dispirited labour movement. 


Two elements 


Before the 198(1 coup this 
movement had two main ele- 
ments. On the left was Disk, an 
avowedly class union movement 
hacked by some 500,000 mem- 
bers and making the running in 
the private sector. In the centre 
was Turk Is, with around lm 
members and . particularly 
strong in the large state sector. 

Today, Disk’s leaders are in 
gaoL They have been among the 
worst treated ot the junta's 
prisoners. They are now in the 
dock in an Istanbul sports 
stadium comparing their beliefs 
with those of President Francois 
Mitterrand of France while the 
prosecutor calls for their deaths 
— even if it would be a surprise 
if that penalty were given . 

While Disk’s affiliates are 
mostly now in the hands of state 
commissars, Turk Is has been 
allowed to continue, in a totally 
emasculated form. 

After Mr Denizcier was 
photographed asleep at a recent 
Turk Is meeting, his laconic 
comment was: ** How can one be 
more dynamic in this environ- 
ment?” 

Strikes, which had cost 7.<m 
working days in 1980 — five 
times the previous record — 
remain banned. All forms of 
collective bargaining are also 
forbidden, not least by a con- 
fidential circular of September 
7 last year by General Necdet 
Ozturun, chief of the armed 
forces. It is. in other words, an 
exceptional period. 

The exceptional measures in- 
clude wage fixing by a 
" tripartite ” High Judicial 
Council— which Turk Is 
privately criticises as “bosses 
body. " They also include a con- 
tinuing ban on the dismissal of 
almost all labour, a move 
introduced in 1980 to protect 
workers after the ban on 
strikes. 

The foreign investor can 
readily find labour of most 
skills, and can count on the 
preparation of new legislation 
designed to deal with some of 
the anomalies of the past. One 
of these was the situation 
where firms could no longer 


afford to dose down because 
compulsory severance payments 
exceeded their net assets. 

Dr Tthan Oztcak, Minister of 
State in the present, govern- 
ment, insists that new legisla- 
tion will, safeguard the right to 
strike. “If the overwhelming 
majority of Turkish workers 
did not go over to Marxist 
Leninist ideas it wafe because 
they bad the right to strike. It 
would be dangerous for us not 
to recognise that That is the 
greatest guarantee that this 
right will be respected. ” . How- 
ever, he gave -a warning in some 
areas, such as health, workers 
will be obliged to go to compul- 
sory arbitration. 

Some former politicians and 
academics express •' concern 
over the legislation being pre- 
pared by the Government, but 
officials at Turk Is are relatively 
sanguine: “The sense of collec- 
tive bargaining is so strong 
that whatever the law we will 
have an acceptable system of 
industrial relations. ” - Their 
approach is to “wait for the 
wind to pass ” and to argue this 
is the best way of winning back 
the support of public opinion. 

Disk supporters argue more 
militantly than ever, while in 
.the centre. Mr Halil Tunc, a 
respected former president of 
Turk Is who was chosen by the 
last President of Turkey (a 
retired admiral) as a Senator, 
becomes daily more outspoken. 

In a recent newspaper 
column he attacked employers 
for deluging the authorities 
with “ outrageous suggestions. " 
They identify their interests 
with those of the country, he 
wrote, insisting that Ataturk, 
founder of the republic, bad 
looked after the interests of 
workers and no-one would be ! 
able to turn the clock back to I 
before his time. 

Such comments underline 
how today's calm on the labour 
front may well prove a distant 
memory once, civilian rule 
returns In less than’ two years 
— according to the generals' 

. timetable — and workers seek to 
restore their purchasing power 
and union rights. 

Mr Tunc has also been .under- 
lining what is perhaps an even 
more • key question for the 
future, the need to tackle the 
country's unemployment. Here 
again statistics are inadequate, 
but the International Monetary 
Fund estimates unemployment 
at 15 per cent of the labour 
. force and the Organisation for 
Economic Cooperation .and 
Development warns it is likely 
to grow over the next five 
years. , . . 

The Government is begin- 
ning to shift its ground: 
“Labour intensive industries 
are what we need.” Mr Turdgut I 
Ozal tells visitors. For in this j 
area Mr Tune has been under- 
lining what many Turks believe 
thal “unless there are solu- 
tions. ' social upheavals are j 
inevitable.” 

D.T. 



Mrs IKcoft: m the midst of 
controversy 


NAZLI 1LICAK 


Taking the 
flak from 
both sides 


IHSAN DOG RAM AC J 


A touch of discipline 
in the common room 


PROFESSOR Ihsan Dogramaci 
has most university staff quak- 
ing. Ten years ago the large 
Ankara university of Hacettcpc, 
which he had set up, was 
festooned with students’ ironic 
slogans: “This is Dogramact’s 
farm.” Today all the uni- 
versities have been turned over 
to his hands. Many of Turkey’s 
best academics talk privately 
of resigning. "Soon there may 
be no universities left," writes 
Professor Mumtaz Soysal, a 
well - known constitutional 
lawyer. 

There is a striking contrast 
between Dr Dogramaci’s critics’ 
view -of him as an arch- 
manipulator determined to 
bring the generals' discipline 
into the common room and the 
fatherly paediatrician who 
assures visitors be has always 
been against the status quo. 
But whereas in the past his 
power came from his ability 
to win others round, today it 
is buttressed by law. For he 
has become the head of a 
formidable body set up to run 
Turkey's higher education and 
which many fear spells the end 
of the country’s long-cherished 
academic freedom. 


Lecturer 


Abroad Dr Dogramaci is 
known for 15 years on the 
executive board of Unicef, as 
Turkish representative to the 
World Health Authority (WHO), 
as a member of the standing 
committee of rectors of Euro- 
pean universities, as a lecturer 
on child health at Paris V Uni- 
versity, and as executive 
director of the International 
Paediatric Association. 

At home he made his fame 
as the bureaucrat who became 
entrepreneur, bending . people 
and rules to turn a burnt-down 
hospital at Hacettepe, into the 
country's leading medical 
centre. He was the university’s 
first president, and remained 
its eminence prise after a shift 
in teaching politics encouraged 
him to- develop his ■ career 
abroad. 

When he talks he makes the 
new higher education law seem 
a model of West European 


sense. It will help university 
departments collect funds for 
their work, ensure proper staff 
go to provincial universities, 
and allow students to transfer 
more easily between universi- 
ties. YOK the Higher Educa- 
tion Council, is also establishing 
vocational schools to absorb 
some of the 400,000 people each 
year applying for Turkey’s 
50,000 university places. 

But Turkey is not West 
Europe and the deluge of press 
editorials attacking the law 
underline such points as the 
degree of political control which 
■will be exercised over the uni- 
versities. Dr Dogramaci heads 
YOK. 17 of whose 25 members 
are appointed by the Head of 
State, the Government and the 
army. University rectors arc to 
ho chosen by the Head of State 
from names put forward by 
YOK. Rectors choose the deans 
of each faculty. YOK can dis- 
miss or transfer teaching staff 
who are not in accord with its 
philosophy. 

It is a measure of Dr Dog- 
ramaci's personality that he re- 
tains a loyal group of colleagues 
who insist he will bring sense 
to the sometimes confused 
world of Turkey's universities. 
But many university professors 
fear the powers given to him, 
and any possibly less academic- 
ally minded successor. 

One recent editorial stressed 
how Ataturk had made Turkey 
“a haven for European men of 
wisdom escaping Hitler’s 
fascism.” “Creative thinking 
freedom is under threat today," 
one professor says, and Profes- 
sor Orhan Aldlkacti, chairman 
of the general's constitutional 
commission says the YOK code 
does “not agree with the basic 
principles of academic free- 
dom." 

What with university staffs 
real income having halved in 
the past throe years and YOK 
now saying it will centralise the 
design of university courses, the 
wind is blowing through the 
campus. Dr Dogramaci has yet 
to convince those under him 
that it is a summer breeze 
rather than a winter storm. 



Professor Dogramaci, 
arch-manijnilator or 
father figure? 


Mrs Nazi! Ilicak. one of Tur- 
key's most influential news- 
paper columnists is not every- 
one's favourite. Impassive and 
on blinking, she casts herself 
as a conservative worried 
about the Soviet threat to 
Turkey. But in her precise, 
convinced way sbe also tegs 
visitors to the modern bat 
ill-kept offices of Te re urn an, 
the conservative daily news- 
paper, that she opposes dic- 
tatorship and that “the longer 
the generals stay in power 
the more they need to listen." 

Her own defence of the old 
conservative politicians has 
set the generals against her. 
They object to her carping 
at their banning yesterday's 
politicians from tomorrow's 
political life. They closed 
Tercuman for a week: when 
she complained of their clos- 
ing down of political parties. 
She has two prison sentences 
for press offences pending. 

Yet the left too has its 
doubts over a person it finds 
an unlikely symbol for press 
freedom. It has not forgiven 
her for the articles she wrote 
before the 1980 coup. Strong- 
ly . anti-communist, sbe 
seemed to articulate the mood 
of right-wing authoritarianism 
the centre and left saw in tfie 
then conservative-neo-fascist 
coalitions. 

To ber critics sbe was blind 
to those coalitions’ excesses 
and notably unsympathetic 
when, say, police attacked 
left-wingers burying their 
dead. More recently, her 
critics connect her with 
efforts to discredit Amnesty 
International's publicity of 
the generals' tortnre record. 

The controversy does not 

disturb ber. On the contrary, 
the visitor to her. Bosphorus 
villa or newspaper offices out- 
side Istanbul's crumbling 
Byzantine walls finds ber 
thriving on the shot from 
both sides. For she has been 
a polemicist for over 20 years. 

Her classmates remember 
her tough conservatism in 
their debating society. She 
herself describes how sbe was 
suspended from school for 
publicly applauding Menderes 
after the 1960 coup had over- 
thrown him and led to her 
father, one of Menderes’s 
ministers, being pat in gaol. 

“I coaid not shake officers’ 
hands then, hut I understand 
this lot is different." she says. 

Other journalists are hi 
prison — -Mr Lutfu Ofiaz for an 
ironic article attacking a neo- 
fascist party; Mr Niyazi Daly- 
anci and Mr Ali Sirmcn for 
membership of the Peace 
Committee; Mr Aydogan 
Buyukuzden. editor of a non- 
violent Maoist paper; Mr 
Suleyman Coskim, a well- 
known left-wing Ankara jour- 
nalists; and some 20 others. 

But Mrs Hlcak is a particu- 
lar embarrassment to the 
generals because she attacks 
them From their own ground 
of anti-communism. 


D.T. 


David Tonge 


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: Financial Times Monday May IT 1982 

Ss Tf TRKW XIII 


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I 


TOURISM 



'\'.v 


The Ottomans called the Bosphorus Bir Nehr-I Aziz (a 
glorious river ) and were the first people to enjoy it. Despite 
much destruction to the woods lining the seashore and the 
invasion of concrete, pollution and over-population, Istanbul 
continues to exude a magic beauty. Like Rome, it Is one' 
of the eternal cities of the world. Above is a tranquil 
’■ scene on the Bosphorus. 


Carpets lose 
their appeal 


UNBEKNOWN to the tourist 
haggling over endless cups of 
■ Turkish coffee with the carpet 
sellers of Istanbul’s grand 
bazaar, these are hard times 
for Turkeys carpet dealers. 
Were the tourist more observant 
he or she might detect a keener 
edge to the sales pattern. And 
were they to know the reason 
why the tourist might, for once, 
emerge with a real bargain. 

For the first time that any 
Turkish carpet dealer can 
remember carpet prices have 
actually dropped over the past 
three years, worse than that 
they have slumped. They are 
down by as much as 35 per cent 
whereas before they were 
always going up and up. For a 
Hereke silk carpet, which he 
could sell three years ago for 
between $4,000 to $5,000, the 
exporter now gets nearer $2,400. 
^ real terms . the percentage 
drop is about double that. 

To quote one major exporter, 
Mr N. Mehmet Derin, profits are 
at “zero levels. If I didn't 
have a work force of some 
10.500 I wouldn't be selling at 
these prices.” 

Given the long production 
cycle— it takes an average 
weaver about one year to pro- 
duce one square metre of carpet 
— it is not easy to lay off staff. 
About 85 per cent of handmade 
carpets are still woven at home. 

An increasing percentage of 
Hereke silk carpets, for which 
Turkey is most famous, are 
nowadays produced under 
more controlled conditions — in 
workshops or small factories 
housing between 10 and 20 
looms. But the silk itself has 
to be collected, spun and kept 
for one year before use, making 
the production cycle nearer 
two-and-a-faalf years. This 
makes it difficult to adjust to 
changing market conditions. 

Silk carpets — produced in 
Hereke and Kayseri — are the 
main export earners. They 
account for only about 25 per 
cent in volume, terms but 
represent more than 50 per 
cent of earnings. Last year it is 
estimated carpet exports earned 
Turkey between $120m and 
5130m. 

But because they are 
regarded as either luxury pur- 
chases or high value invest- 
ments— they cost twice as much 
as Iranian silk carpets — 
Turkish silk carpet sales have 
been badly hit by the world 
recession. Demand is said to be 
down by as much as 70 per cent. 
An added depressant on the 
market is that some carpets are 
being exported at 40 to 50 per 
cent lower even than current 
prices under the “ faconnage ” 
. production system. This is one 
of the various schemes used to 
settle, in Turkish lira, the 
country’s non-guar an teed trade 


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. The country is a long way off achieving its potential to attract Holidaymakers. 

Tourist industry gains confidence 


debts. Carpets are also being 
used as part payment for 
imports. 

Prices of good quality wool 
carpets are less depressed, 
largely because of the sharp 
drop in Iranian production since 
the Islamic revolution. Iran 
which used to dominate wool 
carpet' sales has seen its share 
if the world market halved from 
60 to 30 per cent. But it is 
India and China, rather than 
Turkey, which is filling the gap 
both on price and availability — 
to the extent that the market 
for medium and cheaper-priced 
carpets is beco ming saturated. 

Despite the high quality of its 
carpets and its long history of 
carpet weaving Turkey has, at 
best between 6 and 7 per cent 
of tbe world market. 

Carpets account for only 1.5 
per cent of export earnings. 
Foreign exchange income is a 
little higher at 2 per cent if 
carpets sold in the grand bazaar 
to tourists and expatriates for 
foreign currency is included. 

Nearly 40. per cent of total 
exports are now handled by four 
major companies exporting on 
average between $5m and $10m 
each year every year. Wiese 
are Derin, Ozipek and Durusei 
who are also the three who 
control most of the silk 
carpet production. The fourth 
is Sark which manufactures less 
but which probably sells most 
by virtue of its shops in West 1 
Germany. I 

The biggest 

Derin is now reckoned to be 
the biggest combined producer 
and exporter replacing Durusei 
which was the first to set up as 
a major wholesaler and was the 
place where many of its present 
competitors trained in the 
business. i 

Derin is working . towards a 
fully vertically integrated 
system. Already its Hereke silk 
carpet production process is 
undertaken in-house right from 
the breeding of silk worms at 
the main silkworm centre of 
Bursa. Mr Mehmet Derin is 
aiming to do the same with 
Kayseri silk carpets and 
eventually wool carpets. 

Companies such as Derin and 
Diirusul have largely replaced 
tbe bazaar and weekly carpet 
auctions as the beart of the car- 
pet trade. Their, role is now ; 
restricted to being the colourful 
hunting ground of tourists and 
expatriate residents. To the in- 
experienced buyer the .bazaar 
atmosphere remain infinitely 
more enticing than the clinical 
export warehouses' piled high 
with carpets in seemingly mass- 
produced fashion. 

Margaret Hughes 


TURKEY’S physical and 
- cultural attractions could be 
among the best kept secrets 
in the world. 

In tbe shape of Istanbul, It has 
the oidy city ever to have' 
been the capital of three 
worid empires — Byzantine, 
East' Roman and Ottoman— 
and In Ephesus, Pergaanum 
and what is left of Troy, it 
has classical sites to beat 
almost any in the Mediter- 
ranean. 

On top of these, Turkey boasts 
2,500 utiles of largely undeve- 
loped and unpolluted beaches 
along its Aegean and 
Mediterranean shores, as well 
as some of the most 
spectacular scenery to be 
found anywhere, such as tbe 
weird rock pinnacles of 
Cappadocia, snowy Mount 
Ararat, and the deserts of 
Anatoli a. 

Yet it bas cnly come a trifling 
way to achieving its potential 
for tourism. Out of the 260m 
people worldwide who took a 
foreign holiday last year, 
only L4m went to Turkey, 

. compared to 1.5m In 1979 — 
and each visitors spent on 
average a mere six days there. 
Turkey’s relative emptiness 
may be an advantage for 
tourists who like a sense of 
discovery, but for Ankara, it 


means that a valuable source 
of foreign exchange remains 
to be tapped. Tourism contri- 
buted $277 m (£l54.4m) to 
Turkey's balance of payments 
last year, in Spain it con- 
tributed $5bn. Clearly, much 
remains to be done. 

However, Turkey is moving in 
the right direction in several 
significant ways. The military 
■takeover two years ago, which 
brought an abrupt end to the 
incessant terrorism that had 
given Turkey such a bad 
image, has laid the ground- 
work for a new sense of 
confidence by tour operators. 
There has bees a steady 
increase in earnings from 
tourism from a paltry $20m 
in 1977 to a projected $3 50m. 
this year. 

The Government — sadly, like 
many of its predecessors— has 
declared tourism a top 
priority, and to this end has 
cut much, but by no means 
all, of the red tape which 
used to restrain investors in 
tourism. It has also intro- 
duced a range of incentives. 

They include: 

• Allocation of government 
land at low rents for up to 
99 yeans. 

• Provision, by the Government 
of planning facilities and 
basic infrastructure in tourism 


The 


development areas: 

• - Availability of .long-term 
credit at subsidised interest 
rates, up to 60 per cent of 
project cost. 

• Exemption from construction 
and property tax, for up to 
five years. 

These incentives have been en- 
larged by a new tourism 
encouragement law, which 
came into force earlier this 
year. . Also important 
is the encouragement \ of 
tourism development areas, 
essential to Turkey’s attempt 
to end its severe shortage of 
beds. Turkey has only 5S.OOO 
beds— five times fewer than 
its rival, Greece, which has a 
land mass six times smaller 
than Turkey. 

World Bank, loan. . 

The largest of these schemes 
is the South Antalya develop- 
ment project, to develop part 
of Turkey's superb southern 
coast — which Anthony once 
gave to Cleopatra. With the 
aid of a $26m loan from the 
World Bank the aim is to 
provide the infrastructure to 
support 25,000 beds. For the 
first time in Turkey, a local 
authority has been formed in 
Antalya to co-ordinate the 
activities of investors 
attracted to add their own 


' superstructure " to „ what the 
Government bas already done. 

According to Mr Rental Gokce, 
under-secretary for culture 
and tourism, work on -sewer- 
age and communications is all 
that remains to be completed. 
Eight applications for hotel's 
and holiday villages ■ have 
been submitted to bis 
department. 

Similar projects are under way 

■ -at -nearby Side, a former 

- ancient slave market, and 
Koycegiz, to provide 12,000 
and 10.000 beds respectively. 
On top of this, the ministry is 
conducting a campaign to im- 
prove standards in existing 
hotels, and working with the 
Ministry of Sports and Youth 
to offer more for student 
tourists. 

To service the area and attract 

'. charter' flights, Ihe Govern- 
ment has opened an inter- 
national airport at DaJaman 
with the aim of making its 
attractive south-west comer 
accessible to tourists. How- 
ever, the airport opened a 
year later than scheduled. The 
delay forced one company,- 
Thomson Holiday, to cancel 
its package tour to nearby 
Mugla. Thomson said the com- 
pany was still considering 

- whether to start the tour 
again- even though the air- 
port was open. 


Tbe development projects are 
primarily aimed at Western 
visitors. However. Turkey is 
aware of its potential for 
tourists -from the -Middle 
East, attracted by its combina- 
tion of a familiar Moslem 
background * add compara- 

. lively liberal social attitudes. 

One private project is aimed 
specifically at Moslem tourists 
at Batikoy on -the -Marmara 
eoast near . IstanbuL - The 
developer, Sinankent, is plan- 
ning an Islamic vacation vil- 
lage, with a 300-room hotel 
and 200 holiday flats. It is 
scheduled for completion in 
1987 and represents an invest- 
ment of nearly 530m. 

In spite of the Government’s 
declared intention to encour- 
age tourism, a residue of 
bureaucratic inflexibility still 
hampers some operators. For 
example, many hoteliers have 
to fight for the basic necessi- 
ties of their trade, says Mr 
George Engelhardt. manager 
of tbe Istanbul Hilton. 

‘Trying to run an international 
establishment in this country 
is very difficult-" he says. For 
one thing, he is limited by law 
to importing $50,000 worth 
of the materials be needs a 
year — not very much for a 
hotel such as his which 
expects at least 80.000 room 
nights a year. 


Every imported item needs 12 
invoices, which makes it com- 
plicated to import small 
objects, such as spare pans 
for the hotel’s 25-year-old U.S. 
made washing machines. 

“If something breaks down, 
then we just have to scrum- 
mage around for someone 
who has that spare part,” says 
Mr EogelhardL 

By law, all alcohol imports 
.'have to come through Tekel. 
the state tobacco and alcohol 
- -monopoly. Because of this. 
Mr Engelhardt had to wait 
more than three months for 
a shipload of alcohol to get 
through customs — and this is 
the only way he can obtain 
the Western spirits such as 
whisky and cognac which his 
customers expect. 

Prices are another major prob- 
• Jem. Etery price in hds hotel, 
from a haircut to a Coca Cola 
.. is fixed by the state, which 
makes forward planning diffi- 
cult, he says. 

However, he is optimistic about 
the future. “ There is a con- 
siderable change in Ankara.” 
he notes. “ For the first time, 
people are interested when 
you talk. It still means you 
have to follow things up. but 
at least you feel somebody 
has listened." 

William Dawkins 


Exogenous 

triable 


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They say that “luck” is the point 
where “preparation” catches-up 
wilh “opportunity". 

Turkey is going through the most 
“lucky” period of its economic history 
and this time we are “prepared” to make 
use of this “opportunity". The exogenous 
variable of our new development model'is " 
a constant given by Turkey’s historical, - ■ 
geographical, political and social position 
in the Middle East. 

In 1 981 , over 1 1 9 Turkish contracting 
firms have undersigned a workload of . 
over $ 1 2 billion in the North African and 
Middle Eastern countries. This figure 
which constitutes an increase of 1 56% 
over 1 980. is twice the balance of : 
payment deficit of the Country. 

During the same period, 

Turkish exports to the same region 
have increased by 220% ($ 1 .2 billion). 
Together with Turkish manpower working 
in these countries, the contracting sector 
has injected a flow of over $ 1 ,8 billion worth 
of foreign currency into the economy. . 

This is the equivalent of 65.3% of T urkey’s 
nine-month petroleum bill and 
850% of its tourism revenues (1 981 figures). 
By 1 985, we expect the contracting ■ jj 
revenues to increase to 


$ 45.8 billion; the portion of labour income 
-which returns to T-urkey'to total to $ 2.1 
billion and the T urkish export to these 
countries to come up to $ 1 4 billion. 

The KQ Group is proud to have been 
one of the pioneering firms in opening 
Turkey’s doors to the brotherly Middie 
East and North Africa. The Group 
undertakes over $ 2 billion worth of 
contracting business in Libya and Iraq 
and reinvests its contracting revenues in 
the capital-needing, export-oriented 
industries of Turkey. To name a few: 

Aroma and Mevsu . fruit juice , concentra te 
and p ul p facilities, representing 85% of 
Turkey’s production capacity; 
the Meltem-Bevkoz Shipy ard, first privately 
owned shipyard to export vessels to 
Western Europe; Elektronal and Teletrans . 
leaders in the field of electronic 
equipment production and Anadolu Lift , 
the nation’s sole integrated forklift trucks 
production facility, operating under 
Climax licence of British Leyland. 

Together with its own bank, 

-Hisarbank I nc; exporting .and general trade 
companies (g eneral distributor of Komatsu 
construction machinery) the KQ Group 
has managed to form an. air-tight 
economic development model, 
the exogenous variable of which is 
its contracting business. 

K C would also like to take this 
op portunity to announce its recent entry 
into an entir el y new and vital 
industry - publishing - through “Gune s”. 
already Turkey’s third lar g est sellin g daily 
with circulation over 600 thousand. 

We are prepared to serve as 
the gate to the Middle East and measure up 
to our historical -tr . 
function as the I 
“constant” in * . 

our region 0011313111 

in the 

^Middle East 



1 


Financial Times Monday ’ M&v 19S2. 


kv 


TURKEY XIV 


ANADOLU ENDtjSIRt HOLDING AS 

Coveri ng a very large area in Turkish manufacturing and enjoying close cooperation with 
established international companies, Anadolu Endiisiri Holding takes pride in being Turkey s 
most dynamic, con temporary', and fastest growing concern. 


BREWERY GROUP 

ERCiYAS B i R ACILTK VE MALT SANAYil A.?. 

El'es Piisen Brewery and Maltery 
Istanbul 

EGE BIRACILIK VE MALT SANA YU A.S. 

Efcs Piisen Brewery and Mallery 
Izmir 

C.LNEV BIRACILIK YE MALTSANAYil A.?. 

Etcs Pilicn Brewery and Maliery. 

Adana 

ANADOLU BiRACILIK MALT YE GIDA SAN. A.S. 

Etcs Tilj.cn Brewery and Maltcrv 

Ankara 

TARBES TARIM URUNLER! VE BESICILIK 
SANAYil VE TiCARET A.?, 

Hops processing plant 

ANADOLU KAPAK VE AMBALAJ SANAYil A.S. 
Crown production company 

automotive: group 

ANADOLU OTOMOTlV SANAYil VE TiCARET A.?. 

Produces ■■Skoda" pick-up 4 * under 

Moiokov Foreign CorpvCZEC. license 

CELiK MONTAJ T1CARET YE SANAYil A.?. 

Produces “Lombard ini” diesel and 

jMM>linc engines under Lombjrdini 

FjbriLea Iiuliana Muiori S.P.A./ 

Irak license. 

OTO-PAR SANAYil \T Tl CARET A.?. 

Produces “Jana CejJjn" motorcycles 
and “Skoda" spare parts under Motokov 
Foreign Corp./CZEC. license and“Puch” 
mopeds under Puch-Slc} r AG/Ausuia 
license. 

AN PA ANADOLU PAZARLAMA VE DA&TJM 
TiCARET A.?. 

Marketing Company 
CELiK MOTOR T I CARET A.?. 

Markets “Skoda" Pick-ups "Jawa 
Ce\ Ian" motorcycles and ■*Puch" 
mopeds. 


ANADOLU EXPORT A.§. 

ADDRESS : Buvukderc Cad. 42, Mecidiyekoy 
ISTANBUL/TURKEY 
PHONE :M>U? 57-67 24 70 
TLX : 22 724 anex-ir 


NUR-YAZ MOTORLU ARACLAR. GIDA YATIRIM 
VE PAZARLAMA SANAYil VE TiCARET A.?. 
Marketing Company 

AN'ASA ANADOLU NISSAN OTOMOTlV SAN. A.?. 

Recently established to produce 

vehicles. 

STATIONERY GROUP 

ADEL KALEMCILiK TiCARET VE SANAYil A.?. 

Produces, pencils, ball points 

fluc-mjsters etc. under 

AAV. Faber/W. Germany license 

CLKDKIRTASiYE TiCARET VE SAN A Mi A.?. 

Markets stationery goods 

ALUMINUM GROUP 

NAS AS ALCMlNYUM SANAYil VETiG. A.?. 
Produces aluminum sheets and foil 

DIVERSE 

ANADOLU YAPI ENDCSTRI VE TiCARETA.?. 

Construction company 

ELTEK ELEKTRONIK TEKNOLOJl A.§. 

Markets “Honeywell" computers 
in Turkey 

KARMASAN KARTAL MAKiNA SANAYil A.?. 
Produces "Dcstakar” forklifts 
under Czechoslovakian license 
A NA DOLL-' DESIZCJUK TICARET A?. 

Maritime cargo services 
CYPEX CO. LTD. 

Marketing company ' 

ANADOLU EdiTiM YE SOSYAL YARDIM VAKFT 
Foundation for educational 
arid social services 
ANADOLU EXPORTA.?. 

Eipom industrial and 
agricultural products. 


ANADOLU ENDUSTRI HOLDING A-?. 
ADDRESS : Emirler Sok. 3/1 Sirkeci - 
ISTANBUL/TURKEY 
PHONE : 26 50 05/5 lines 
TLX : 22 564 Jawa tr 
CABLE : Anhol Istanbul 





Outside the city 
centres Ataturk’s 
reforms still have to 
contend with traditional 
values. The next two 
pages discuss how the 
balance of society is 
changing. 


On the road east of Urfa, in 
{.oath-eastern Turkey great 
convoys of lorries stocked 
with hail ding and war mat- 
erial thunder down towards 
Iraq. 

The road is had and the 
driving worse. Every few- 
miles, a track is lying on its 
side, its cab smashed to a 
wafer. Some distance away, 
a Kurdish shepherd will be 
perched on one leg, staring 
with ryes as empty as the 
green steppe, as if even in- 
their ruin these great engines 
exercise an unbreakable fas- 
cination. 

A Uttle south of the road. 
Just short of the wire and 
w a teh lowers of the Syrian 
frontier, lies the tiny Kurdish 
village of Kantar, ringed by 
a hedge of dry cotton and 
buried in spring mud. As a 
village it is typical neither 
of Turkey, nor of the south- 
east of the Knrdish steppe 
shepherd but it is not bard 
to find and Its chief figure, 
Hajii Mahmut. is a talkative 
man. 

Three elements make life 
for the 50-odd households, all 
more or less related, some- 
what untypical of the region. 
The first is (he main road. 
Although the military Govern- 
ment has clamped down on 
smuggling by the returning 
lorry drivers, one or two of 
the village young men sport 
carefully preserved blue 


Family life in rural areas. James Buchan reports 

Forgotten villages 


jeans, American cigarettes 
cause no surprise and there 
are half a dozen television 
sets. 

The second is; the border 
With Syria. • Many of the 
villagers have travelled across 
and some speak moderate 
Arabic in preference to bad 
Turkish. Only -.one in 10 of 
the village girls speaks any 
Turkish at all, for their 
education - ends with the 
village primary school whose 
efcimney provides nesting for 
a pair of -storks. . 

The hospital in the Syrian 
town of El Haseke has been 
known to admit severe cases 
from the village. The 
villagers say treatment there 
is free and nearer and better 
than the Turkish Govern- 
ment hospital in Mardin. 50 
miles away. In fact, (his is 
the only advantage of their 
position for they feel for- 
gotten by the Turkish authori- 
ties. 

Electricity was only in- 
stalled two years ago and the 
village stands at the end of 
a long chain of water users. 

The third element is the 
unmissable presence on the 
main road of Mr Nezir 
Devrimd and his new hotel 
with a parking lot for 300 
cars. 

Haci Mahmnt • says he is 
not an Aga. as • are the 
Knrdish landlords of the 
uplands beyond Mardin who 
may boast 30 or more villages, 
with their livestock, build- 
ings and peasants. But 
judged simply on the plastic 
flowers and velvet sofas in his 
guest room, he is a rich man. 
In fact he owns some 1.500 
donums (a donum is just 
nnder \ acre) under cotton, 
wheat and lentils, employs 300 
and is in debt to the tunc of 
TI 32m — roughly the same 


amount that Nezir Bey bor- 
rowed from. the Turizm bank 
to start his hotel. Otherwise, 
all but three or four families 
have a plot of 10 or so 
donums for their own needs. 

They say that even in win- 
ter nobody starves, but the 
village is short of water, 
capital and. work. ' 

Kantar is in fairly bad 
repair, hut as most of the 
houses are mud not stone, this 
is because of feeklessness 
rather than shortage of 
money. Capital is needed, 
rather, for women, seed, and 
farm equipment. 

Sums as high as TL lm 
(£34500) can be demanded as 
bride price, but as none bnt 
Haci Mahmut and his imme- 
diate family could afford this, 
the settlement is very mneb 
lower and it is a tribute- to 
village diplomacy that no girl 
of marriageable age has been 
left unmarried, both a shame 
to the village And a social 
problem. 

Giris. tend to marry at 14 
or soon after. Ideally, their 
first' cousin and almost 
invariably a boy . they have 
seen and spoken to. 

All those questioned had 
heard of family planning, but 
they said that the imam of the 
mosque bad spoken out 
against what a doctor would 
call effective methods. But 
the death rate for Infants is 
so high — seven out of 19 
live births for Had Mahmut 
— that there is little tempta- 
tion to restrict pregnancies. 

Had Mahmut's thirst for 
capital was increased by dif- 
ficulties with the cotton dur- 
ing the years of violence and 
uncertainly before the mili- 
tary takeover in Ankara in 
the late summer of 1980. 
After exhausting the patience 


f0H 


of tbe Ziraat Bank, ho was 
driven to the bankers (money 
lenders) before Nezir Bey 
persuaded him.' to seQ "500 
donums. 

Haci Mahmut is hopeful 
that . the worst is now past, 
bnt the police-station beyond 
tbc village still insists that 
work stops in . .the fields at 
. 5.00 pin. 

As for the lack of work, 
three village boys are actually 
at the university huL most of 
the young men return from 
the secondary school at 
Nusaybin with Utile to do if 
Haci Mahmut can give them 
nothing. It was this Idleness, 
repeated in thousands of 
villages, that provided a re- 
cruiting ground for the 
Apocu, the Kurdish Marxist 
secessionists, brigands or 
plain Aga haters who ter- 
rorised the countryside in the 
late 19705 and still oblige the 
army to maintain a heavy 
presence in the area. 

Tbe last election in Kan- 
tar, in 1978, was supervised 
by armed Apocu. But the vil- 
lagers also point out that 
even before the rise of the 
Apocu, the identification of 
local magnates with one or 
ether of Mr Buient Ecevit or 
Mr Suleyman Demirel meant 
that nobody could vote out of 
conviction. 

. An old man bobbles in. He 
claims to be a 100 years old. 
a$ old men do in Turkish vil- 
lages. Asked to remember his 
ml it ary service In 19Ui cen- 
tury Syria, he stands up to 
speak but a curtain flaps 
somewhere in bis old head 
and he sits down with a start 
and a smile of apology. He 
does say, however, that he 
cannot remember the country- 
side so safe'. Everybody nods, 
but Haci . Mahmut seems to 
be worrying about his crops. 


Offices in Europe : 


West Germany : 

ANADOLU 

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ADDRESS : S000 Munched 2 

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PHONE : 080/594421-22 
TLX : 529589 anadd 


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INTERN ASS. A. 

ADDRESS : 16 rue Mauroir 1207 Geneva 
PHONE : 364400-364910 
TLX : 289929 mas ch 


Uncertain role for religion 


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ys 


"GENTLEMEN AND citizens, 
please note well that tbe 
Republic of Turkey will never 
he a country of sheihks, 
dervishes, disciples or fools.” 
Thus spoke Ataturk in 1925, 
but it is also significant that 
General Kenan Evren re-quoted 
him in a speech to mark tbe 
beginning of Ataturk cen- 
. tenary year. 

He went on to emphasise tbe 
difference between atheism 
and secularism, one of the six- 
main principles of Ataturkism. 
Secularism, he said, “makes the 
exploitation of religion ns a 
tool in politics unreasonable 
and entirely illogical.’’ 

This good Ataturkist line, 
enshrined in the constitution 
(article 19). lias proved to be 
somewhat more complicated to 
enforce in practice, although 
there have been petty edicts 
banning thp features roost 
openly associated with funda- 
mentalist Islam — the wearing 
of beards and veils in public 
offices. 

The Generals leave the im- 
rrrssinn. prohably because of 
events in Iran under Ayatollah 
Khomeini and President Sadat's 
assassination in Egypt by an 
evtrpmp Moslem fundamenta- 
list Troop lhat they are aware 
of religion still being poten- 
tially an uncontrollable politi- 
cal forru. 

An ip'-ijp in point of an 
apparrnt rnntradiction between 
keeping religion subservient to 
ibr state and ostensibly apart 
from politics has been religious 
education. In 1931 and 1935 
•Mntiirk had religious classes 
formally banned in secondary 
and primary schools (although 
nffiriai Ouranir courses held 
under ihe directorate of 
religious affairs were per- 
mitted). Yet last year in the 
autumn religious education was 
re-»nirndtirpd cnmoulsoriiy — 
?n apparent breach of one of 
AV«tiirk's principles. 

The decision appears to have 
been a hangover from the 1950s 
and 19fi0s when multi-party 
polities first of all wa s de- 
liberately more sensitive to the 
fcrlings of the electorate — 
and, serond. saw Islam as 
a counterweight to Left-wing 
ideologies and atheism. 

Devout Moslem 

It would seem that this 
political aim lay behind the 
derision. tt had. ton. an 
evlern.il dimension for (he 
Turkish Government has been 
prr«rinc for Imams to be per- 
mitted to enter countries, like 
West Germany, with large 
communities so as to offset any 
potential infiltration of Left- 
wing political thnnght. 

Tn short. General F.vren, a 
devout Moslem and son of an 
Imam, yet a man whn dc- 
Iihernteiv made a point or not 
kfepm? the fasting ttroulh or 
Ramadan last year, seems 
raunhT between upholding 
secularism but at the same lime 
not averse to using religious 
teaching a* a controlling 
noli Ural force. 

Tlinre an». of course, 
syrup M me at which those appre- 
hensive of n religions revival 
rmdri take fricht. There was . 
the demons i rat n m in Konya in 
Alien?! lflRO. in which The 
National Salvation Party led by 
Professor Nromrffm Erbakan 
played on important role. 

. Turbans were worn, beer 
t-bups stoned and banners in 


banned- Arabic script unfurled. 
Some even refused to stand for 
the national anthem. Erbakan 
and S3 of his party are on trial 
for involvement in this. 

Enrolment in Islamic 
teachers' training schools has 
risen. In 19R3 there were -45 
schools . 'n 1973 143. and in 
1978 437. The number of 

students has risen from 9,284 
to 36.378, and to 134.486 re- 
spectively. the number of 
teachers over the same period 
from 4S4 to 4.922. But in 
the end. the level of piety proh- 
ably has nor changed, even if it 
is more publicly demonstrated. 

This is because Islam in 
Turkey — were it ever a con- 
ventional force and in spite of 
being the final repository of 
the Caliphate — never re- 
covered from A ta lurk’s con- 
certed assault. Between 1924 
and 1937. for example: the 
Caliphate and religious courts 
was abolished, the fez out- 
lawed, the dervish orders made 
illegal and their property con- 
fiscated. 

Secularisation 

The Christian calendar was 
adopted, tin* call to prayer 
chanced from Arabic to 
Turkish, a new rnmanised 
alpha ik' I introduced, school in- 
struction of Arabic and Persian 
prohibited, religious classes, 
banned at primary ami 
second dry levels, and Sunday 
rather than Friday declared the 
day of rest. The 1937 Constitu- 
tion merely pul this secularisa- 
tion in writing. 

The result is that religion 
and its direction arc now part 
of the civil service. Mr Tayyar 
Altikulac is in charge of 
Diyanei Islori Baskanligi 
(Directorate for Religious 
Affairs), which is responsible 
to the Pr i mo Bf i u is fc r. I [ 
appoints the fifi.Oflfl or so Imams 
operating, vets their sermons 
(of late without some success 
as some Friday Khutbas have 
been notably fundamentalist in 
tone), appoints the 1.500 pro- 
vincial muftis, and controls the 
55.000 mosques in use. 

Even in this department, the 
conflict - between the mosque 
and the Government arises. In 
recent months this occurred 
over the issue of whether girls, 
under an order from ihe Educa- 
tion Ministry, should wear 
headscarves to school. The 
Diyanet sent a four-page 
memorandum to the Education 
Ministry arguing that as the 
Islamic prescription that 
women should cover their 
heads posed no threat to 
public order they should l>e 
encouraged to do su. The sub- 
ject was even debated with 
energy in the Consultative 
Assembly. 

By curtailing formal party 
political Ufe. The Generals 
could Lave, for ih t moment, 
shut off an outlc-t for expres- 
sion which might strengthen 
ihe hand of religion. But the 
overall feeling is that AtalurkV 
secularism has w«n through. 
At the same time there are 
a wide variety of sects — rang- 
ing from the orthodox Sunnis i 
(which, make up some two- I 
thirds, of the population) and | 
the unorthodox Shi’ite Alevis. j 
The latter tend to be in the i 

E oorer areas and side with the 
eft Their interpretation of 
Islam makes them by instinct 
more radieal, and they would 


prefer a more secular govern- 
ment because they would, as 
a minority be more likely to 
find protection. 

•The mystic tradition of 
Tarikat. brotherhoods, remains 
strong, reinforcing Turkey’s 
reputation of not being, 
hecauso of its history, a con- 
ventional Islamic (albeit con- 
stitutionally secular) state. The 
Nakshibcndis. the Mevlevis 
(whirling dervishes) and 
Bektashis are all theoretically 
illegal but offer more flexible 
attitudes ' towards formal 
relijpon. 

Since the 1950? two more 


Tarikats — the Suleimancis 
and Nurcus named after 
specific people havt emerged. 
The latter, for example, have 
played a more openly political 
role than other Tarikats. help- 
ing to set up the National 
Salvation Part)'. 

But even if there have been 
a growth m overt Islam, 
and in foreign policy closer 
contacts with Islamic countries, 
the desire to go hack to the 
old religious ways as an official 
doctrine, even by revolution, i; 
not apparent. 


lerged. 

!, have P 1 

o Utica I Qmt I 

fall ill 


Anthony McDermott - ^ - 

_ Z T 



ANTOINE 

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MAK20UME 


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fc Private stevedoring facilities, 
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fc P and I club correspondents. 

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Tel: 12S8, 4807, Telex: 68136/GS212 

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International Transport, Shipping and lnsurance 
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"AS 

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53 




<urctX' . 















u w 


s ..... 

JQfh . Financial -Times Monday May 17 1982 

STOBKEYXV 

1 a,;- 



XV 


SOCIETY 


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times for shanty town dwellers 


ANKARA, like many other 
cities in developing countries, is 
surrounded by armies of 
squatters. However, Turkish 
squatters— if it is fair to call 
them that — are like no other 
squatters in the world. 

In contrast to the dismal huts 
of corrugated iron and plastic 
containing a despairing people 
found outside Rio de Janeiro or 
Soweto, Ankara's shanty towns 
have an optimistic, almost 
jaunty air, despite their 
poverty. Many of their inhabi- 
tants own their land. Their 
homes are more like cottages 
than the shacks normally asso- 
ciated with such settlements. 

These shanty towns are 
called . gecekondus, . meaning: 
“ built in a night ” shacks— so 
named because they were liter- 
ally built In a night to take 
advantage of a Turkish law for- 
bidding the summary destruc- 
tion of inhabited dwellings. 

Discontent 

Ankara’s gecekondu area, 
which contains one-third of the 
city’s population of 3.2m, 
could still become a major 
source of social discontent. 
These . people feel finanrinl 
hardship more .• sharply than 
almost any others. 

To take one example of the 
toughness of gecekondu life, 
Mehmet, who used to keep 
chickens, now drives a taxi. 
Wizened and greying, he con- 
siders himself comparatively 
well off by gecekondu stan- 
dards. He earns between 
TL 15,000 to TL 20,000 (£55 to 
£75). a month — less than half 
the average wage. 

Most of that goes on food for 
himself and his wife, with whom 
he shares his three-room breeze- 
block-and-wood construction 
along with three relatives. He 
also has to pay for repairs for 
the taxi he drives, and it is 
these which account for his 
TL 100,000 debts. On top of 
this, Mehmet, who is in his early 
50s, has to send money to his 
two sons doing military service, 
as well as try to save for a new 
taxi to replace his present one 
in a few years’ time. 

Mehmet is worried because 
he is getting steadily poorer. 
Two years ago, he was relatively 


comfortably off, but now has to 
cut hack on food and clothes to 
make ends meet. This is mainly 
due, he says., to the increasing 
price of petrol and a decline in. 
the number of people taking 
taxis, while at the same time 
other prices go on rising. 

Even so, Mehmet is relatively 
lucky because he' owns bis 
gecekondu, and like most . 
others, it is far from being a 
cheap shack. Mehmet's is worth 
about TL 400,000 — just under, 
half the price of a similar sized 
flat in central Ankara. It is 
perched on the equivalent of a 
second storey above two other 
gecekondus. To reach it you 
have to pick your way through 
muddy streets and damber op 
a crooked staircase. 

Like most gecekondus in his 
area it has electric light, but 
no running water or sewerage. 

The main room is incongru- 
ously furnished with modem 
teryiene pile armchairs and a 
bookcase with a complete 
Larousse encyclopaedia. 

Gecekondus are not in 
general as large as Mehmet's, 
and others often rent them 
from the local aga the gece- 
kondu equivalent of a feudal 
landlord, who specialises in 
obtaining land from the Govern- 
ment and then renting or sell- 
ing it. 

Mehmet points out that the 
effect of financial hardship is 
often softened by the tradi- 
tional gecekondu habit of help- 
ing one another. A friend of 
his recently became ill and 
everybody in the invalid's street 
gave his family enough money 
to survive until he could work 
again. Apart from crises like 
this, other families tend to 
survive by sending children and 
wives out to work at boot black- 
ing or office cleaning.' 

This sense of" interdepen- 
dence is . an inheritance from 
the gecekondu's rural past 
Although they have been 
around in one form or another 
for more than a century, they 
began to grow quickly after the 
Second World War, when popu- 
lation growth in the country- 
side started to outstrip the 
growth of agricultural produc- 
tivity. 

In spite of the traditional 



“ Overnight " homes outside the city 


strength of Turkish family ties, 
wage earners left their villages 
for the towns, where they 
found -work in new industries, 
but nowhere to live, except for 
a gecekondu. As these were 
enlarged, the families followed. 

The flood increased when the 
Democratic Party Government 
of Mr Adnan Menderes put into 
effect a major rural mechani- 
sation plan between 1951 and 
1953, sending 40,000 tractors 
into the countryside, making up 
to 1m farmers redundant 

Over the years most of 
Turkey’s migrants to the cities 
came from the less developed 
areas, in particular from the 
mountains above the Black Sea, 
to settle in towns like Ankara 
and the more developed indus- 
trialised west The result for 
Ankara has been a population 
increase from 25.000 to more 
than 3m over the past 60 years. 

Further force was added to 
the tide with the Turkish con- 
struction boom in the early 
1960s. This had the double 
effect of providing more jobs in 
towns as an additional incen- 
tive for poor or redundant 
villagers to move in, while, at 
the same time creating a 
further shortage of low-cost 
housing. Rocketing urban land 
values made a further growth 
in illegal settlements outside 
the cities inevitable. 

It was at this point that a 
new breed of gecekondu 
dweller emerged. Low paid 
government officials and clerks, 
who could no longer afford city 
property, started to move into 
the shanty towns. These 
account for more than 9 per 


Fa mil y planning still 
in its infancy 


THAT WESTERN unmention- 
able — the condom — has never 
caught on in the Turkish 
countryside. The tale is told by 
Professor Nusret Fisek, the 
leading expert on population 
control in Turkey of the time 
the Swedish Government pro- 
vided his research team with 
a large volume , of these useful 
devices for a project in a group 
of Anatolian villages. 

“It took us years to distribute 
the consignment,” said Prof 
Fisek, of the Hacettepe Uni- 
versity in Ankara. But why had 
■they been received so un- 
enthusiastically? “I suppose it 
was a matter of taste,” he 
added. 

The story illustrates the con- 
cern in Turkey at the growing 
population and at the same 
time the determination of the 
Turks to tackle the problem in 
their own way — which in the 
case of the recalcitrant villagers 
was the time-honoured practice 
of coitus interruptus. 

According to the 1980 census, 
Turkey’s population Is growing 
at a net annual rate of 21 per 
thousand, easily the highest 
growth in Europe. This amounts 
by now to an extra million 
mouths to feed in a population 
of 46m, which will absorb 


almost half the projected econ- 
omic growth for this year. 
Meanwhile, European countries, 
notably West Germany, • are 
making it clear that they will 
not go on accepting surplus 
Tuiks into their economies in- 
definitely. 

Soaring unemployment, over- 
crowding • in Turkish cities, 
most -notably in the shanty 
sprawls that bouse one-third of 
Ankara’s and one-fifth of Istan- 
bul’s populations and Tur- 
key’s alarming infant mortality 
rate — again the highest in 
Europe — are further causes for 
concern. Most experts involved 
with the problem, including 
advisers to the Government, 
would be happier with a net 
population growth rate nearer 
10 per thousand. 

The military Government has 
embraced population control 
with enthusiasm. A programme 
to educate soldiers in family 
planning is already in forcein 
the army and Gen Evren him- 
self has spoken out in favour 
if. limiting family size — a sub- 
ject on which his democratically 
elected predecessors, tended to 
kep silent. A Bill legatLsing 
abortion on social grounds, as 
in England, and sterilisation — 
both hitherto taboo areas-^-is 
now being tabled. Advertise- 


ments for smaller families 
appear on the television. 

Yet family planning in Turkey 
remains a confusing picture. 
The wars that bled Turkey from 
1910 to 1922 ushered in a period 
where the priority was to 
increase the size of families. 
Abortion and contraceptive 
drugs were outlawed and cer- 
tain tax exemptions were 
allowed to large families. It was 
not until the 1960s that these 
policies were reversed and con- 
traceptive rids and family plan- 
ning education made legri. 


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In the years after World 
War H, rising living standards 
led to a sharp fall in the death 
rate while urbanisation was hav- 
ing a much slower effect on the 
birth rate. An additional 
impetus from change in policy 
came from Ankara doctors who 
became disturbed by the sharp 
rise in the number of induced 
abortions and resultant deaths. 

This tended to convince many 
TurJtish experts of what they 
wanted to believe, that Turkey 
was a country where families of 
three or less were the norm 
and where contraception was 
desired, as in Northern Europe, 
rather than one where large 
families were the norm. A 
survey in 1978 showed that a 
majority of the women, ques- 
tioned did not want a third 
child. 

In fact, there are sharp 
differences in regional attitudes. 
These are most marked between 
the urban west and the rural 
east In the 1978 survey in 
eastern Turkey, nearly half of 
the peasants asked wanted a 
fifth ffriid , a tolerance more in 
line with some of Turkey’s 
Moslem neighbours than with 
Istanbul. 

Nevertheless, it seems dear 
that at least one in two Turkish 
women capable of having child- 
ren use some form of contra- 
ception, and the need is now to 
provide more effective methods, 
such as the Pill and inter- 
uterine devices, and then, to 
popularise them. As a champion 
of community medicine. Prof 
Fisek believes this is most 
effectively done through the 
training and supervision of mid- 
wives or other women within 
each community rather than 
simply through the Govern- 
ment's 600 or so family plan- 
ning clinics or the hospitals. 

At present there is a lack of 
any effective services to apply 
the generals’ professor family 
planning policies and to supply 
the essential follow up services 
to women practising birth con- 
trol, Yet the various high 
growth projections — for 
example, 75m in the year 2000 
—would seem to be unduly 
pessimistic and some experts 
believe that the growth rate will 
actually stabilise at European 
levels before the end of the 
century. 

James Buchan 


cent of Ankara's gecekondu 
dwellers, according to one 
academic. 

The flood continued through- 
out the 1970s. helped by the. 
continued, mechanisation of. 
farming and a lax interpreta- 
tion of planning laws by suc- 
cessive governments, keen to 
win the political support of 
gecekondu dwellers, who 
account for 40 per cent of all' 
urban dwellers. 

However, migration from vil- 
lages into gecekondus shows 
signs of abating because work 
is increasingly hard to find in 
cities. At the same time, gece- 
kondu dwellers who want to 
move back into the villages are 
restricted due to shortage of 
cash and a shrinking market for 
their homes. 

While gecekondus seem to 
have resulted from pressures 
similar to those which produced 
shanty towns in other countries, 
they still differ in some other 
revealing ways. 

Contrary to the belief of even 
many Turks, gecekondus are not 
generally built by the people 
who live in them. According to 
one town planner- only 11 per 
cent of Ankara's gecekondus 
were built or partially built by 
owner-dwellers. 

As a by-product of this, a 
race of specialised express 
builders have emerged, capable 
of knocking up one room in 


eight hours or so. to beat the 
planning laws. There is also a 
well-developed market in instant 
second-hand building materials. 
There is one street in Ankara, 
Bentderesi Caddesl, which is 
almost exclusively taken over by 
shops selling second-hand doors, 
.•windows, and even ready-made 
walls. 

Once the first room has been 
built, families tend to add the 
rest piece by piece when they 
can afford it In spite of this 
piecemeal approach, many of 
the finished buildings have dis- 
tinct architectural style- reflect- 
ing the families' original vil- 
lages. To cater for this, another 
market in ready-made plans 
has grown up. 

Because thev are designed 
with some thought, gecekondus 
have made as much a contribu- 
tion to the value of the urban 
real estate, as they have to the 
demand for cheap labour in 
towns. They have incidentally 
also helped villages by provid- 
ing a new market for agricul- 
tural goods. 

Just as gecekondus have 
regional achitectural styles, so 
families from one area will tend 
to group their homes together, 
forming mahalles — neighbour- 
hood units — and contributing to 
a social stability for which 
other kinds of shanty towns are 
generally not known. 

However, gecekondus do not 
always resemble cottages, in 
spite of their generally rural 
background. In one area on 
the edge of Ankara, they can go 
up to 16 floors, crowding so 
close together you see people 
living on opposite sides of the 
passage between blocks playing 
backgammon by resting each 
end of the board on their res- 
pective window ledges, says Mr 
Korel Goymen, formerly deputy 
mayor of Ankara. 

Of course it is not always as 
■tranquil as the visitor may be- 
lieve. The inhabitants remain 
half-way between being dis- 
placed villagers and unwanted 
urban invaders. Their village 
values are under threat Finan- 


cial pressures are forcing a 
gradual breakdown in their 
traditional structure of 
authority, meaning that power 
tends to be moving into the 
hands of wage-earners and away 
from village father figures. 

The young people were fertile 
ground for the political discon- 
tent of the late 1970s. Even in 
Ankara and even in areas Such 
as those close to the military 
hospital, or military prison, 
whole districts became no-go 
areas for those of the wrong 
political persuasion. 

The gecekondu areas supplied 
many of yesterday's terrorists — 
and today's Government says it 
is keen to reverse tfc/ trend 
to the cities and encourage 
social peace by keeping people 
on the farm. 

$28m credit 

Ankara's city planners' 
attempts to relieve these pres- 
sures include a public housing 
project to provide 55,000 units 
15 km west of the city. This was 
started two years ago' with the 
help of a $28m credit from the 
EEC's European Resettlement 
Fund. 

Mr Goymen, who was deputy 
mayor responsible for planning 
at the time, says the idea is to 
provide homes for people of all 
classes — including gecekondu 
tjwellers, who will be offered 
interest free loans to move 
there when it opens in 1985. 
Similar plans are afoot in Izmit, 
Konya and Antalya. 

In another effort to ease the 
problem, the Government pro- 
duced a housing act last year, 
creating a special fund to en- 
courage public and private firms 
to come together to bufld more 
cheap homes. 

However, gecekondu dwelDers 
remain desperately poor. 
Mehmet himself argues: “ If 
there were no economic prob- 
lems, then there would be no 
need for political argument in 
the gecekondus.” 

William Dawkins 




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If you are looking for business opportunities beyond die 
confines of America and Western Europe, Turkey is one 
country you should be looking at right now. 

Turkey has all the potential for being one of the fastest- 
developing countries of the middle-to-late 1 980s. 

Consider these basic facts. 

First , Turkey’s greatest resource., like any other nation, is its 
people. Turkey has a highly skilled, motivated and disciplined 
workforce that has proved itself throughout Europe and the 
Middle East. And with a population of 45 million, Turkey is a 
substantial market for the products of industry. 

Second , consider Turkey’s position on the globe. Is it in: 
Europe, the Middle East, Asia? The answer is, all three. Turkey 
is the ideal “bridge” between nations, continents and cultures. 
The Turks, uniquely among the nations of the world, 
understand both the Eastern and. Western ways of life. 

Tted, Turkey is one of only seven countries that are self- 
sufficient in food with the added potential to become a major 
food exporter. 

Fourth, Turkey has vast natural resources that are as yet 
virtually untouched. Forests as large as Finland’s and immense 
potential for hydroelectridty are only two among many huge 
opportunities for development. 


Fifth, m spite of problems in the late 1970s, 

Turkey is an island of stability in all-the Middle . East 

Sixth , and perhaps most important, Turkey is now a highly 
accessible country for foreign capital’ There are no limits on 
profit repatriation, and processing of investment applications 
takes place in a matter of days. 

At Ko$ — Turkey’s largest industrial and commercial group 
of companies — we believe Turkey is most definitely a land of 
opportunity. 

At present we are expanding into the areas of tourism, 
agriculture and the marketing of high-technology products 
throughout the country. 

We are your natural partner in T urkey and your natural ally 
in your efforts to market your products anywhere in the Middle 
East. 

We would be more than happy to discuss with you any of 
the issues raised here. 

Please contact Mr. Orhan Mizanoglu, Vice President, 

K 09 Holding A.§., Findikh, Istanbul -Turkey. 

Tel: 432900 Telex: 24218 koctr. 

The Ko§ Group 







«- "»■ ’ T. ' • Jl-fVli 1 ) . 


XVI 


Financial . Times Monday • May.. 17 1982 



TURKEY XVI 


Export growth stays strong 


TURKEY'S export performance 
probably constituted the single 
most dramatic development in 
the Turkish economy in 1981. 
Revenue from exports grew by 
almost 62 per cent over the pre- 
vious year to reach 54,703m. 

The Government expects ex- 
ports to increase in value by 
a further 25 per cent this year, 
to at least $5, 850m. This is the 
figure . given to the Inter- 
national Monetary Fund (IMF) 
and Turkey’s creditors. In pri- 
vate. however, officials make no 
secret of the fact that they 
expect exports to pass the 
S6.000m mark. Apparently the 
target was set low intention- 
ally, so that it could be 
passed, allowing the Govern- 
ment to capitalise on the public 
relations value of a double 
achievement. 

Industrial exports more than 
doubled in value last year to 
S24H90m. Exports of agricul- 
tural goods increased by about 
33 per cent to $2.22Sn2. For the 
first time, industry performed 
better than agriculture, tradi- 
tionally the dominant sector of 
the Turkish economy. Export 
successes were achieved in a 
broad range of consumer goods 
and manufactured items, but 
the main export increases come 
in processed food products, 
ready-made wear and construc- 
tion materials. including 
cement iron and steel, and 
glass and ceramics. 

.There was also a substantial 
re-direction of export trade 
towards the Middle East and 
North Africa. Exports to 
regional Opec countries quad- 
rupled to reach Sl,630m. These 
countries’ share of Turkey’s 
exports jumped from 13 to 35 
per cent. Iraq and Libya alone 
imported goods valued at 
SI, 000m, five times more than 
the previous year. 

Exports to countries in the 
Organisation of Economic Co- 
operation and Development 
(OECD) also increased, despite 
sluggish economic growth in 
industrial countries. They grew 
by about 35 per cent, to 


by aboi 
52.264m. 


including Libya, Saudi Arabia, 
and Algeria. 

According to the calculations 
of Enka, Turkey’s leading ex- 
port house,. Turkey is 1,500 
" trucking " miles away from 
Baghdad, 2,000 miles from 
Tehran, and 2,500 miles from 
Riyadh. 

"I don’t think that any 
Western nation can compete in 
cost and freight with ■ high 
quality Turkish refrigerators 
delivered to Tehran, plastic 
pipes to Riyadh or glass bottles 
to Baghdad,” says Mr Serif 
Egeli, E oka’s managing director. 
"Almost 30 per cent of their 
cost and freight prices are made 
up of transportation costs.” 

■ Turkey has also benefited sub- 
stantially from the Iran-Iraq 
war — which shut down the Gulf 
harbours of both countries. 
There has been increased 
demand for Turkish goods and 
an increase in the amount of 
goods shipped across Turkey. 

The war and several other 
factors — such as the sizeable in- 
crease in exports to Libya — has 
led some sceptics to argue that 
the increase in exports last year 


was largely attributable to 
ephemeral phenomena and 
could not be sustained- 

There is some truth in this 
and experts do anticipate a drop 
in exports to Libya and Iraq, 
which are suffering from 
diminished oil revenues. How- 
ever, say the experts, this will 
be more than compensated for 
by exports to such countries as 
Iran. Algeria and Nigeria — not 
to mention Western Europe. 

The upsurge in exports owes 
much to both the acumen of 
Turkish businessmen, who are 
by and large newcomers to the 
export business, and the 
astuteness of the Government’s 
policies. 

The first, and probably most 
important, pillar of this policy, 
is the application of a realistic 
exchange rate policy. This was 
achieved hy breaking the old 
devaluation taboo and setting 
the parity of the Turkish Lira 
each day. by letting it more or 
less float in relation to the cur- 
rencies of Turkey's major 
trading partners. 

This has enabled the Turkish 
exporter to receive the true 


TRADE 

Middle East and North Afrit 


Exports 

Imports 


T9 

%of 

total 

>80 

■ %of- 
total 

*81 

%0f 

total 

$ 

399m 

17.7 

S 

661m 

7U 

5 

UtiJm 

39 

I04m 

204 

3.15bn 

39.8 

3L57bn 

39.9 


equivalent of Turkish Liras 
against his foreign currency and 
has shielded him from inflation 
and devaluation. 

Exports are ■ encouraged 
further through preferential 
access to subsidised credit— the 
cost is almost one third the 
normal rate. Exporters ot 
industrial goads are entitled to 
retain half of their earnings 
from exports for their own 
export needs or those of their 
local suppliers. Twenty per 
cent of export turnover is 
exempted from the corporate 
tax. Waiving of import taxes, 
tax rebates for export produc- 
tion and priority access to 
Central Bank foreign currency 
reserves constitute other incen- 
tives. For the first time in Tur- 


kish history exporting is just 
about more profitable than any 
other business. 

The Turkish export boom was- 
achieved in less than two years 
and is likely to continue to show: 
strong growth, provided the 
incentives remain attractive, red 
tape is further cut, and domestic 
demand remains depressed. A 
first-time exporter requires up 
to 25 signatures from 15 depart- 
ments of the stated The latest 
OECD report on Turkey has 
suggested that less reliance on 
state subsidies for exports would 
reduce formalities and admini- 
strative delays “ as well as being 
more in keeping with the rules 
of international commerce.’’ 

Me tin Munir 


Overseas contracts rise sharply 


In previous years two-thirds 
of Turkish exports went to 
OECD countries and one-third 
ro the rest of the world. Last 
year exports were almost 
equally divided between OECD 
and tbe rest. 

The re-direction of exports to 
regional Opec countries is ex- 
pected to continue, as Turkey 
continues to capitalise on its 
proximity to the Middle East 
and North Africa and exploits 
its special political ties with a 
large nunraer of these countries. 


FROM NEXT YEAR Turkey's 
earnings from the activities 
of its overseas contractors are 
expected to become its big- 
gest source of foreign ex- 
change, after exports and 
workere* remittances. 

Mr Nnrettin Kocak, one of 
Turkey’s leading contractors 
and chairman of the Contrac- 
tors Union of Turkey, fore- 
casts that overseas contracts 
wifi bring Turkey Slhn in 
1983 and S1.5bn in 1984. 

Turkish contractors have 
been phenomenally success- 
ful in the past four years, par- 
ticularly so in 1981. The 
volume of contracts grew 
from $L6ftn at the beginning 
of 1978 to $4.8bn at tbe start 
of 1981. At the beginning of 
this month the volume stood 
at 312bn. Mr Kocak — whose 
own Kutlutas has contracts 
worth 5750m in Saudi Arabia, 
Libya and Iraq — says that 
"unless the Opec members 
experience unforeseen set- 
backs,” tbe volume should 
reach the $16bn mark hy the 
end of this year. 

Like the recent export 
boom, the growth in overseas 
contracting was caused by 


the economic crisis which 
contracted the domestic mar- 
ket sharply- The contractors 
went out earlier, however, be- 
cause their crisis started 
earlier than industry’s. 

According to one estimate, 
the scope of contracting work 
available in Turkey in 1975 
was less than one fifth of the 
work Turkish contractors 
could carry out with their 
then-existing potential. After 
1978 the overall economic 
crisis, high Inflation, the sus- 
pension of a number of gov- 
eminent projects and slack 
demand for housing forced 
an Increasing number of con- 
tractors to seek work abroad. 
. last year the Government 
encouraged the exodus by pro- 
viding the contractors with 
new Incentives. Contractors’ 
overseas profits are exempt 
from the 50 per cent corpor- 
ate tax and bonds from tbe 
25 per cent expenditure tax 
and stamp duties. Foreign 
currency deposited in Turkish 
banks by them is treated as 
convertible and made avail- 
able on demand for transfer 
abroad. 

One major problem which 


Turkish contractors may en- 
counter this year relates to 
their activities in Libya 
where 70 per cent of Turkish 
contracts are concentrated. 
Libya is beginning to experi- 
ence payment difficulties 
owing to the drop in its oil 
revenues. 

While tbe larger and more 
experienced Turkish contrac- 
tors seem prepared to cope 
with the situation, smaller 
ones which entered the 
market last year may run 
into difficulties. 

Libya has offered some 
firms erude oil on a barter 
basis but one shipment worth 
$27m handled bv the 
Kozanoglu-Cavnsoglu group 
was not financially successful. 
Turkish contractors seem to 
be reluctant to accept crude 
oil in lien of payment 
because they have no experi- 
ence in tbe spot market. 

The Turkish Government 
has entered into a dialogue 
with Libya to avert . a pay- 
ment crisis which could affect 
not only the contractors but 
also a large number of 
exporters. Libya, supported 
by Turkish contractors, has 
urged Turkey to step up its 


crude purebaso from Libya 
from 2.5m tons' to 4m ions 
it has also suggested that 
Turkish workers in Libya be 
paid in Turkey by the 
Turkish central bank in 
Turkish lira. The Turkish 
Government seems reluctant 
to accede to these wishes but 
Is also keen that the Libyan 
market docs not shrink. 

Some TnrJdsh contractors 
believe that if the Turkish 
Government is imaginative 
Tnrkey could capitalise on 
the situation in Libya and 
Increase Its volume of work 
there. - 

"This can be a very good 
time because other countries 
are avoiding Libya whleh 
they consider to be high risk,” 
said Mr Akin Ongor, the 
director of Pamnkbank’s 
overseas contracting services 
director. “The. Turks can 
easily fill the gap.” 

It would seem however 
that Libya's share will 
decrease In the coming years 
as Turkish contractors in- 
crease their activities In 
target areas such as Algeria, 
Iran, Iraq and Saadi Arabia. 

M.M. 



OMER CAVUSOGLU 

Contractor 
in a 
hurry 

GLOSSY, slick and as rain- 
bow-coloured as Joseph’s coat 
— Mr Omer Cavusoglu's -new 
newspaper Gunes is much 
like Turkey’s other popular 
dailies. Bat soon after its 
birth three months ago the 
newspaper broke ranks, 
flouted a military ban, and 
started a campaign accusing 
one of Turkey’s largest in- 
dustrialists ’ of smuggling 
equipment. 

Muck-raking In the U.S. 
tradition? Not quite. The 
industrialist just happens to 
be a competitor of Mr Cavus- 
oglu and his partner In KC, 
Mr Ahmet Kozanogln. 

Today Mr Cavusoglu (pro- 
-nonneed Chow-nsboloo). is 
untouched by accusations of 
opportunism or being a traitor 
to his class. - "We bad to 
show that nobody is too big 
to be above the law,” he says 
in his basket-ball-court sized 
office. 

Others are more sceptical 
of his motives. Revenge for 
tbe past? Competition 
between tfisarfoank and those 
of the other Industrialists, or - 
as rival representatives of the 



A-.''!. :-!..'- -• 

Omer Cavusoglu 

earth-moving equipment firms 
Caterpillar and Komatsu? A 
wish for publicity for his new 
paper? 

Not yet 40, he has so far 
had five careers; 

From 1967, contractor at 
home; 

• From 1977. contractor In 
the Middle East, now with 
Sibn of work In his order 
book, mainly from Libya; 

• From 1978, banker, in 
Turkey and the Grand Cay-; 
man Islands: “It helps 
smooth the ups and downs,” 
he says. 

• Industrialist, spreading in- 
to shipbuilding, and elec- 
tronics and with a sudden 
near-monopoly of fruit juice; 

• Publisher of a newspaper 

which in three months has 
built up Turkey’s thlrd-Iargest 
circulation. ;■ * 

The route he and his part- 



ner have followed — laming 
from a declining Turkish con- 
struction market to the rich 
pickings of the Middle East, 
and then using profits abroad 
to bay up ailing firms— is one 
that others have trodden. Be 
explains Turkish success in 
countries such as Libya as a 
bixture of cheap labour, poli- 
tics, religion and an ability 
to take tbe snap decisions on 
risk which can elude long- 
established companies. 

Now KC is in the midst of 
spending TL 3. 5 bn (£13m) to 
build np its newspaper just as 
margins at Hisarbank are 
being squeezed and, most 
crucially', Libya has been 
having trouble in meeting its 
bills. 

Retrenchment fs not a 
thought that seems to cross 
Mr Cavusoglu’s mind. 
Instead, he is a typical man 
in a hurry, angular and bony, 
determined to get what be 
wants and, a son of a former 
minister, well versed In 
dealing with governments. 

Present plans Include set- 
ting up a supermarket in 
Kuwait and a Turkish- 
Kuwaiti bank in Istanbul. 

Even if KC's interests are 
too . large for Ankara to 
neglect, their newspaper's 
attack bn a fellow Industrial- 
ist have eost them the good- 
will of their clan. Rut then 
goodwill was never something 
they over-valued. 

David Tonge 




) 


^ ->o- v 

\y:.«T /5. J 


7 


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7 * V-' -v. 








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m +tets 






* r-_ • • 




As Displayed By Facts And Figures 


With its growth in deposits at the rate of 287 % in 1981 

HISARBANK 

has asserted itself as YOUR FIRST CHOICE among Turkish 

Banks. 

With its contribution to the national economy by a growth in 
the foreign exchange earnings at the rate of 162 % in 1981 

HISARBANK 

has proven itself as YOUR FIRST CHOICE among Turkish 

Banks. 

The growth at the rate of 802 Vo in the volume of loans 
allocated to the export sector in 198.1, has made 

HISARBANK 
YOUR FIRST CHOICE 
among Turkish Banks. 




J 5 


i! 


■*< I 


tdi» 










As Displayed By The Services Rendered 


' ril 




Hisarbank A.§. of Turkey is a financial institution of 
growing importance to Turkey and to the world. Adopting 
the guideline that financial perspective is the basis of world 
business, and through the dynamic reorganization of our 
International Division we offer all the financial services a 
businessman needs in Europe, in the United States and 
especially in the Middle East countries. Our correspondents 
and representation offices in these regions help us in the 
performance of all international banking operations. Along . 
with that, we provide advice, contacts and expert information 
to Turkish and foreign businessmen, which they need for 
their endeavours to be successful. As such, we are proud to 
contribute to the progress of the international business 
relations of our contry. 


*„■ 


ill* fc.; *=■ 
ill l-i - 


HEAD OFFICE: BtiyQkdere Caddesi, ZSndrlikuyu, Istanbul, Turkey ;TeI. 67 76 90, Cable : HQsum, Zinrirlikuyu, Istanbul, TbL26444 hair tr ; . 

INTERNATIONAL DIVISION : Hisar Palas, Halaskargaa Caddesi, Osmanbey, Istanbul, Turkey ; Tel. 41 46 72,40.12 51, 41 34 51* Tlx. 23797 and 22874; 
KUWAIT REPRESENTATION : P.O.Box 25724 Safal-Kuwait ; Tel. 45 19 50. 42 27 70. 42 27 74. Tlx. 46202- 


' • - • i. -i*-,-,- -j; 


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Financial Times Monday May 17 i982 



10 


COMECON'S PROBLEMS 




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East 


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By Max Wilkinson, Economics Correspondent 




“ THE COMMUNIST countries* 
are different, yiiu can't regard 
Romania, for* example, ** in the 
same way as-a Latin American 
dictatorship *. even, though they 
may both be in- a eery .s imil ar 

economic mess.” " • ■ 

That informal ' comment on 
the sidelines of the International 
Monetary Fund’s conference in 
Helsinki last week illustrates a 
major dilemma which the fund 
is beginning to- face in its atti- 
tude to the debt-ridden countries 
of Eastern Europe. 

The issue was raised publicly 
by Mr Donald Regan, the U.S. 
Treasury Secretary, just before 
the fund's interim committee 
meeting. At the gathering the 
U.S. achieved some discreet sup- 
port for its wish that the IMF 
should tighten its loan condi- 
tions, and it is recognised that 
this - could ' prove particularly 
difficult in relation to Com- 
munist countries. 

On the outer hand, many 
central bankers, including the 
Bank of England, are desper- 
ately worried about the huge 
amount of loans to- Eastern 
Europe from commercial .and 
other banks which are now so 
precariously roped together. 
Many bankers believe that the 
IMF could plan ' an important : 
role here if Hungary's! admis- 
sion to the Fund is followed by 
Poland and other Comecon 
countries.. 


The crunch comes 
in implementing 
loan conditions 


According to this view the 
Fund in any case needs more 
^ ' cash through a substantial in- 
crease of quotas and should be 
more flexible about its terms of 
• lending. 

The anxiety about major de- 
j* faults in Eastern Europe is 
r:: therefore closely linked, to the 
i‘~ wider debate about the role of 
V the Fund in giving help to the 
less developed countries- on 

- easier terms during a period of 
falling commodity prices, high 
interest rates and a worsening 

- burden of debt. 

But the Communist countries 
• •- pose a special ideological prob- 
lem. B roa aly, the questi on is how . 
-- can the Fund insist on financial 


disciplines for 'economies which 
pot only officially reject the pri- 
macy of marker forces in favour 
of central planning and direc- 
tives hut are also closely super? 
vised by the Soviet Union. 

- Purists in sucti countries may 
regard the IMF's emphasis on 
market discipline as the begin- 
ning 'of wickedness nr even see 
its officials. as ah advanced party 
for capitalist invasion. 

. Such a philosophical clash 
seems very unlikely in. the case 
of Hungary, which was formally 
admitted to the IMF last week. 
This is because the country has 
been ■ quietly overhauling its 
pricing and exchange rate poli- 
cies for the past 15 years. How- 
ever, even in this most market- 
orientated of the Comecon 
stales, there are issues which 
the fSind will need to handle 
delicately. 

Romania, a member since 
1972 and now a substantial bor- 
rower, poses more practical' 
difficulties, for the Fund. These 
relate to the Fund's assessment 
of the economy as well as its 
ability to insist on reforms as a 
condition of borrowing. 

Poland's application to join 
the Fund brings these problems 
into yet sharper focus. Its appli- 
cation is unlikely to get very far 
until the political upheaval 
there has been ' resolved. 
An IMF team has already 
assessed the Polish economy and 
is expected to return there 
later this year. 

Poland's economy is regarded 
by (he Fund as falling some- 
where .in between that of 
Hungary and Romania. Hungary 
is seen as being most like a 
Western market economy, and 
Romania more analogous to a 
Third World family-dictatorship. . 
By contrast Yugoslavia, which 
is also a member of the Fund 
but not of Comecon, has a fairly 
market-orientated system. 

In a confidential paper to 
the IMF board, officials point 
out that many of the problems 
of Conjmunlst countries — for 
example unrealistic or multiple 
exchange rates and. a moribund 
pricing structure-— are shared 
by many non-socialist ' regimes. 

Thus, the balance, of pay- 
ments deficits and debts of the 
Comecon countries are seen as 
economic problems whose solu- 
tion can be agreed at a safe dis- 
stance from the jousting fields, 
of .. East-West politicians. 

On the other hand, the IMF 
has found that the crunch comes 


Poland 




USSR 9? 


E Germany 





Romania 




Hungary 




1 


Net foreign debt 

COMECON countries 




Jj 


Czechoslovakia 


Bulgaria 



1981 


E^ll 19B0 


£ billion. end -year 


5. 


10 


15 


20 25 

Sour™ Emromtt Conrm lm cti lor Europe , 


Mancn Sedger 


as 'soon as it gets down to the 
detailed discussions about how 
a particular regime will imple- 
ment the conditions for a pro- 
posed loan. 

As one official said: “There is 
a world of difference between 
those who get there basically by 
relying on market incentives 
and those who rely on a scries 
of directives. In some countries 
nothing happens at all unless 
therp is. a directive.’’ 

This distinction can mean that 
the importance of money and 
of financial statistics may be 
very different in a planned 
economy compared with what is 
assumed in the West — and the 
financial aggregates are crucial 
to the IMF's efforts to assess 
and monitor its “clients.” . 

For example, in Poland, as in 
Romania, there is a huge •‘over- 
bang” of cash kept in notes 
under! mattresses as well as in 
deposit accounts because people 
don't trust the official savings 
instruments or cannot find any- 
thing- they want to buy. 

The IMF. therefore, faces a 
conceptual problem of defining 
and measuring domestic credit 
and money supply even before it 
asks wbat would happen if 
market forces were to unleash 
all this pent-up purchasing 
power. 

In . Poland, for example, the 
Fund's officials have estimated 
that it would take a't least six 
months to mop up all the sur- 
plus money, even if prices were 
all doubled or tripled. Romania, 
which has just begun a reform 


of prices at the behest of the 
IMF suffers- the same problem. 

However, in many planned 
economies including Romania, 
China and the. Soviet Union, 
prices and wages decided by 
fiat do not reflect scarcities, 
real costs or the real demands 
of the economy. The relation 
between different prices may 
reflect nothing bur the whims 
of forgotten planners. In China, 
for example, the framework of 
relative prices was set in 1949. 
These rigidities prevent plan- 
ners or managers from receiv- 
ing financial signals about 
changes in the terms of trade 
Dr. indeed, any other economic 
realities. 

It is one thing for the IMF 
to identify these failings, but 
much more difficult to suggest 
practical remedies or sensible 
investments without the guid- 
ance of an efficient price 
system. 

The practical result, has been 
that in Romania, at least, the 
IMF has been unable to apply 
conditions with the same 
strictness as it would to a 
developed Western country in 
baldnce of payments difficulties. 
It has been forced to apply 
effective controls through those 
statistics which it believes are 
reliable — foreign borrowing and 
the trade deficit. However, 
these are regarded as the 
symptoms rather than the cause, 
which is excessive consumption 
and investment rn relation to 
available resources 

China, which recently joined 


the IMF, has a quite different 
regime but many . of the 
economic problems confronting 
the Fund would be similar to 
those in Romania. 

In Romania, Fund officials seem 
fairly confident that targets will 
be met. The big question is 
whether this will happen in 
ways regarded as fair tn the 
West, sensible for Romania and 
sustainable in the long run. 

One danger is that as a result 
of inefficient pricing policies, 
imports may be restricted in a- 
way that would deny vital sup- 
plies to domestic factories. 
Another is that the regime will 
be so desperate to increase 
exports at any cost that .goods 
will, in effect, be dumped on 
the West. 

Romania has yet to show' bov 
it will respond in detail to the 
IMF’s guidance and supervision. 
Until it does, many of the in- 
dustrialised members, particul- 
arly the U.S. will be wary of 
admitting other Eastern bloc 
countries. 

As one delegate said: 
“Romania is small enough to be 
only a won) 1 but not a matter 
of major international concern. 
However, if a large part of the 
Eastern bloc were in the Fund, 
that could be quite different." 

Even in Hungary, which talks 
“much the same language" as 
the IMF economists, some pos- 
sible pressure points can be en- 
visaged. 

For example. Hungary allows 
managers to make profits as an 
important way of receiving 


signals from the economy they 
are serving, but what should be 
done with those profits? Should 
they be retained for investment 
“at managers’ discretion or 
should some part be distributed 
as salary differentials? These 
are important issues on which 
the Fund might have views 
which conflict with an orthodox 
Communist line. 

For the present, however, 
there is no sign of friction and 
Mr Janos Fekete. deputy Gov- 
ernor of the Hungarian National 
Bank, says with practised ease: 
“We are a Socialist planned 
economy under the control of 
the market. There is no point in 
planning a new factory if there 
is no market for its output.” 

Sometimes, he says, there are 
social - reasons for ' planning 
something _ which a market 
would not endorse— r but that, 
after all. is happening all the 
time in the WesL 

The more difficult question — 
and one which nobody at the 
IMF rares to discuss publicly 
— is the extent to which the 
Soviet Union will allow it to 
insist on " sensible " economic 
management where this over- 
turns deep - rooted prejudices 
in the Russian back-yard. 

One experienced observer of 
the Eastern bloc said: “Some 
of them think the system 
doesn't work because it is not 


The Fund starts 
from an article 
of faith 


being implemented. Many think 
the system is wrong but they 
know they have to live within 
it." 

The pronouncements of the 
IMF. however delicately 
worded, cannot ultimately- avoid 
that proposition. 

Against all these difficulties 
the Fund starts from an article 
of faith that it should help 
countries’ economic and pay- 
ments difficulties, irrespective of 
politics. 

As one central banker said: 
" There are non-Communist 
economies in a worse state than 
Poland and Poland’s difficulties 
are the sort of 4hing the Fund 
was set up to deal with." 


Lombard 


Yet another 


Ministry 


By Samuel Brittan 


“WHEN IN doubt, set up a 
Ministry,” This thought springs 
to mind on reading of the pro- 
ject for a new Planning Ministry, 
devised by the Labour-TUC 
Joint Liaison Committee and 
likely to be approved by 
Labour's National Executive 
Committee. They will provide 
great fun for the kind of Prime 
Minis ter or Cabinet Secretary 
who finds tinkering with the 
machinery of. government a 
blessed respite from the 
intractable problems of actual 
policy. 

At least 50 per cent of the 
attraction . of a supposedly 
powerful new economic minis- 
try, rivalling the Treasury, is 
that it provides . a post for a 
politician whom the Prime 
Minister wishes to appease, or 
al least play off against other 
colleagues, without putting him 
at the very centre of affairs. 

The new proposals claim tn 
profit by the experience of Lord 
George Brown's ill-fated Depart- 
ment of Economic Affairs in' the 
1964 Wiisbn government The 
crucial error in bringing about 
the OEA's failure is said to 
be that the Treasury was left in 
charge of public spending. But 
as Sir Leo Pliatzky. . himself a 
distinguished former Treasury 
civil servant, well disposed to 
Labour, remarks In his new 
book Getting and Spending, the 
Treasury under Mr James Cal- 
laghan was certainly no obstacle 
to going beyond the previous 
Conservative government's ** de- 
cision to increase public expen- 
diture in line with an unrealised 
rate of economic growth and to 
increase it in excess of an un- 
sustainable rate of growth." 

The main result of railroading 
through over-ambitious public 
spending programmes was just 
the kind of stop-go which 
politicians condemn so loudly 
in Opposition. Public spending 
rose even faster than planned 
— by 6 per cent per annum in 
each of the two financial years 
from 1965 to 1967. followed by 
a frenetic expansion of 124 per 
cent in 1967-68. (All these 
figures are after allowing for 
inflation.) There was then a 
dramatic switch to falling public- 
expenditure in the final two 
years of that government as the 
new Chancellor, Mr Roy 
Jenkirts. struggled to make 
devaluation work. 

The failures of the first 


Wilson governments had little 
to do with Whitehall mach- 
inery. The crucial policy' deci- 
sion' taken when Labour was 
still in Opposition, was to 
defend the sterling, parity. We 
now know, as the radicals of 
that period did not. that ex- 
change rate changes are hardly 
ever the key to growth. Never- 
theless an early decision to float 
the pound might at least have 
avoided the extreme changes 
of course and brought leaders 
of all political parties to 
realise the internal obstacles to 
growth a decade earlier than 
they did. 

The new look Planning Minis- 
try is likely to be based oa the 
expenditure divisions of the 
Treasury. Prime Ministers and 
Cabinpl Secretaries have played 
with the idea of a Budget 
Bureau separated from the 
Treasury for many years. The 
Americans already have such 
a bureau without any- distinc- 
tively socialist results. The 
author of Labour's plan, v.ho is 
presumably well versed in the 
ways of Whitehall, has not 
quite made up. his mind 
whether the new Department 
should also breathe down the 
neck of the Department of 
Industry or even ahsorb it. 

Despite all the lip service to 
decentralisation, selectivity and. 
the ipvolvemenr of trade 
unionists, the heart of Labour's 
plan to boost growth and reduce 
unemployment is still an old 
fashioned stimulus lo demand. 
Import and price controls will 
be the main auxiliary weapons. 
But would not something also 
need to be done about wages 
to make it more likely that 
output rather than inflation 
received a boost? The author 
remarks that a view would be 
needed “on the movement in 
costs and prices which will 
support and sustain expansion 
and will be compatible with 
economic and social objectives." 

Thus one is left With the final 
thought that the unfortunate 
minister who will have the job 
of frying both to moderate and 
tb reconcile the main nbjpc!iV?s 
will be none . other than the 
Chancellor of the Exchequer: 
and that no amount admini- 
strative tinkering wu! pro"it!e 
him with ideas or tools which 
previous incumbents have 
lacked. 


m 


SFS333T 


Letters to the Editor 


The rapid search for a way to run a railway 


From Mr R. Bomcif 

Sir. — Your realistic editorial 
(May 10J about the impasse on 
our railways holds nut the hope 
of positive conclusions from the 
rapid survey to be undertaken, 
by the expert group headed by 
Sir David Serpell. Indeed this 
is described as likely to prove' 
“the most important survey^ of 
the system since Beeching." 

The ultimate failure of the 
Beeching plan to endow ibis 
country with a viable rail ser- 
vice should he seen as due to 
the preference for direct costing 
instead of what vs nowadays' 
termed “ avoidable costs.' 1 In 
this respect your editorial asks 
the important question how 
certain ’* social" traffic costs 
should he defined and who 
should hear them. In France, 
for instance, employers in the 
central areas of conurbations 
hare to share the cosr of public 
tTansoort serving their em- 
ployees. 1 fear, however, that 
your editorial was somewhat 
optimistic in asserting that in 
this country urban mass tran- 
sit is already recognised as suit- 


able for a subsidy"; this does 
not tally, unfortunately, with 
the opinion of the highest court 
in the land— dr perhaps this was 
one of the ** glaring anomalies 


short of the funds allegedly 
“wasted" on our railways. 

. To a considerable extent the 
public has not derived the 
maximum benefit from our 


'- Direct labour in the 
health service 


mentioned in this context. The railway subsidies because fares 
contention, that trunk routes have been kepi .so high as to 
should be treated as “ cominer- deter many potential passen- 
dal ” ventures " on the whole ’’ gers; this may have proved to 
requires more qualification be a profitable book operation 
than your brief reference to the • "but- it did not help the public 
environmental costs of heavy by providing financially attrac- 


road traffic indicated. 

You are on firm ground 
where you warn against the 
tendency to make important 
development plans— -one thinks 
here especially of electrification 


tive services and keeping un- 
necessary traffic off the over- 
crowded roads. The Serpell 
group might be wise to spend a 
week or so in Sweden to see 
how a deliberate cheap fares 


— "too dependent on temporary . policy can invigorate rail 
labour difficulties." jince the traffic without incurring over- 
relative costs are'quue out of all losses, 
proportion. But it was perhaps It would, of course, be highly 
not fair to British Rail staff to unpropitious were the Serpell 
hold up BL as an example of group lo lay any stress in its 
better labour relations. Indeed deliberations on the current— 


our motor industry has not on 
the whole, proved so profitable 
or internationally competitive 
as to justify— in purely profit 
terms — the heavy subsidies pro- 
vided for it over the years; 
their total does not fall very 


and only temporary — easing of 
the world oil supply situation. 
Ralf Bonwit, 

Sorby, 

Kiln Lane, 

Barfield Heath, 
Hcnley-on-Thamcs. 


The Treasury , model 


and forecasting 


From the Chairman. ITEM 

Sir,— Samuel Brittan's two 
articles (April 29 and May 10) 
■.on the Treasury model area 
welcome attempt to de-mysmy 
the activities of forecasters. He 
is right to caution against its 
use as the final arbiter in 
economic debate. ITEM has 
been using the model for the 
past five years and would vouch 
for the considerable judgment 
that needs to be applied. This 
is not a weakness of the model 
but a feature of alitnodels. 

Indeed, the ITEM dub was 
- -founded in the belief that such 
judgment could only be pro- 
vided by a broad cross-section 
of businesses, city and public 
sector economists. Equations 
need to pass the “reasonable 
man ’’ test, otherwise one 
blindly fallows the conclusions 
of an unknown Sum buried 
somewhere in the Treasury. 

The debates on these areas of 
'judgment are as valuable as the 
: final forecast since they give 
members a sense of the vulner- 
able assumptions. 

All the same." economic 
events are not random and so 
the past is a guide to the future 
and mistakes can be made just 
"as; easily by imposing pre- 
- -Indices. ... , . 

■ - As the articles note, it is 
quite amazing that. forecasters, 
different models and 


casts like the previous ones or 
like all others. Economic jour- 
nalists- are often in danger of 
peddling the consensus at the 
expense of the outlying fore- 
casts. The causes of such differ- 
ences are normally detectable 
and the process of economic 
debate would be helped by 
commentators paying more 
attention to them. 


Paul Cockle. 

Scicon, Centre Point, 


103, New Oxford Street. WCI. 


European energy 
supplies 

Frpin Mr V. Stepanor . 

Sir . — Your report" (May 7) on 
the U.S. proposals to tighten 
credit limits against the Soviet 
Union ties in with new U.S. 
attempts to persuade western 
Europe not to increase imports 
of Soviet natural gas. 

The American argument that 
iew east-west gas pipeline 


Germany. France and Italy it 
would not top 5 per cent. 

The real threat of dependence 
in energy terms does not come 
from the Soviet Union but 
from across the Atlantic. Over 
50 per cent of western 
European energy has come 
from American oil. gas and coal 
companies for the past few 
decades. In 1980 these com- 
panies received about $9bn net 
profit. of which Sfibn was 
filtered back to the U.S. 

The U.S. plan that American 
coal should solve western 
Europe’s energy problems can 
also be seen as. an attempt to 
find profitable markets for the 
U.S.'s vast, coal reserves in a 
situation where coal is losing 
to natural gas on the home 
market. Since western Europe 
natural gas accounts for only 
15 per cent of energy consump- 
tion (compared with 28 per 
cent in the U.S.), the use of 
more coal instead of Soviet 
natural gas is hardly in west 
Europe’s economic interest. 


V. Stepanov. 

Navosti Press Agency, 


the nt - 

threatens western Europe with 
being dependent bn Soviet .• Pushkin Square, Moscow, 

energy does not stand up to 

analysis. In the 1960s theJSbto — ; — — — 

states agreed that deliveries of 
fuel from any one source 
shduld not exceed 15 per cent of 
their requirements. 

•Present deliveries of Soviet 
oil and gas, coal and oil 


From the Joint. Parliamentary 
Under Secretary of State, 
Department of Health and 
Social Security 

Sir, — Mr Jerrome of the 
National. and Local Government 
Officers Association (May 6), 
claims that contract NHS ser- 
vices provided by" the private 
sector are likely to cost more 
than direct labour. Let me make 
clear the Government's posi- 
tion on the use of private con-' 
tractors. 

Broadly the Government 
believes that the costs for hos- 
pital support services, now run- 
ning. at .well over £lbn per 
annum should be critically 
assessed with ihe object of mak- 
ing savings — savings that can 
be used to improve patient care 
to show that we really mean 
“patients first." 

The market place is the one 
clear test of cost efficiency. 
Only by going to tender for ser- 
vices like domestic, catering 
and laundry services can health 
authorities be sure of the cost 
position. But. of coarse, it is 
essential that the exercise of 
comparing direct labour costs 
against contract costs -is done 
on a fair and open basis. :We 
recognise that health authori- 
ties may not always be able lo 
act in the absence or advice on 
the complex issues involved. We 
will shortly be issuing guidance 
that wili assist health authori- 
' ties to test out their costs 
objectively and to make the 
right decisions — in the interests 
of their patients. This policy is 
not a doctrinare one but is 
based on the sensible realisa- 
tion that we must make best use 
of resources. 

Mr Jerrome did not give 
details of the rwa cases He men- 
tioned to “justify” His view- 
point. Hut certainly his second 
allegation thai contract domes- 
tic services ai Aylesbury arc 
more expensive than direct 
labour costs was disproved by 
a detailed professional survey 
In 1079. I cannot believe that 
the re-letting of the contract 
last year has changed the posi- 
tion but I would be very pleased 
to analyse -the cost details on 
which he bases bis claim . 
Geoffrey Fmsberg," 

Department of Health and 

Social Security. 

Alexander Fleming House, 
Etlephant and Castle, SE1. 


Directors’ equity interests 

From Mr S. Pcntrill . ’ remedy to the complaints of 


Sir— Mr Herhert Spender's Messrs Hnod and Spender is in 
Sir,— Mr Herbert apenners Qwn haflds . tbey shou jd 


with 




assumption s.^- pr oduce, such 
similar resuKPerfiaps- here a 
club^has- ' -There 

is less pressure to produce fore- 


to .... such. . SSL-V&ZS. £•» iKSS tiZaZ to .riply »—••* ^ they comolam. 


Sar d bS<™-the ijato ceUiuR of J*. MW* SSH 5* t JJf n ‘5S h 0 ™ s "3*76 s/ioe Lane EM 

dependence. In the case of West myself to suggest that the Room 5^3, 76, Shoe Lane, EC4. 


Another view of a chemical company. Sequence 5 




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Gulizar Artar talks aboucher son-in-Liw,.Huj>nu Giray, a technician withToiyag, Turkey. 




“For us, 
is a family affair” 



“It doesn't take much to^et me to admit- 
that I'm very proud of Husnu. In 1956 he 
began with Turyag, as wecall Henkel here, 
and since that time he has worked his way 
up to a fine position, with responsibility 
for detergent production and packaging. 
But I’m justas proud of the whole Turyag 
family, which is what alot of people joking- 
ly call us because so many of us have 
worked for Henkel for so long., 

My husband and I starred it all when we 
joined Henkel, and 1 really enjoyed my 
work in the laboratory, liter on, our * 
eldest daughter. Peri nan, began in the 
packaging division ot Tutsi!, which is one 
of our most popubr w.ush products. Then 
came Hawa, our next daughter, and" 
during her long career wirh the company 
she met and married Husnu. ' 

On top of char, my granddaughter, Haticc, 
is finishingup business school and'expects ' 
to stan working for Henkel quite sooni - 


I suppose it’s unusual for threegenerations 
of a lamify to work for any companv.and 
Husnu says it could only happen in a 
company like Turyjg. 1 chink he's right, 
because the work is pleasant and the 
company is strong and growing. Besides, 
the company does so much for us. 

For instance, there’s Kurban Bayrami, 
which in Turkey is a little like Easter. 
Turyag makes this a special annual party 
with a huge feast for all employees and 
retirees, and lambs are given to the 
retirees as presents. This will seem even , 
more a family aflair ior us next year with 
Harice there, bringing'our 
number to- six. Who 
knows? Our 'Turyag , 

\' family* could go on • 
forever.” 


Turyag-Turkiye Yag Ve Mam u lati 
A.$., Izmir, is one of more than 100 
companies of the Henkel G roup, , 

situated in more than 40 countries. 

W orldwide sales 1981= S.8 billion DM. 
34,000 employees. Headquarters 
Dusseldori, Federal Republic of 
Germany. Product range includes 
laundry products, household cleaners, 
cosmetics, adhesives, industrial 
deaners, oleochemicals, auxiliary prod- 
ucts for textile and leather industries. 
Over 8,000 products for all walks oflife. 



1 My sou-in-lawHfisjiu'' ■ 




Chemistry working for yon. 




16 


• . •T-.Ul i£iOl~: 

Financial Times Monday May 17 1982 



n.v. gemeenschappb.uk 

BEZITVANAANDEELEN 
PHILIPS’ GLOEILAMPENFABRIEKEN 

{Philips’ Lamps Holding) 

Eindhoven, The Netherlands 

At the Ordinary Gen era I Meeting of Shareholders held on 
13th May 1982, a total dividend in cash for the year1981 has 
been declared of 1.60 Netherlands Guilders per ordinary 
share of 10 guilders nominal value. After giving effect to 
the interim dividend of 0.60 guilders previously declared 
and paid in January 19B2, a final dividend for the year 1981 
amounting to 1.00 guilders will become payable. 

At the above-mentioned meeting itwas also decided to 
make a distribution of 0.20 guilders per ordinary share. This 
distribution is made in connection with the distribution out 
of retained profit of 0.2Q guilders per ordinary share decided 
at the Ordinary General Meeting of shareholders of N.V. 
Philips' Gloeilampenfabrieken (Philips? industries). . 1 

The above-mentioned final dividend and distribution, 
together amountingto 1 20 guilders gross per ordinary 
share, will be payable as of 26th May 1982. 

Payment of the net amount on UK-CF certificates will be 
made by the company's paying agent, Hill Samuel & Co. 
Limited, 45 Beech Street London EC2P2LX to the UK-CF 
depositaries in accordance with their positions in the - 
books of CF-Amsterdam on 13th May 1982, at the close of 
business. 

Holders of UK-CF certificates are reminded that such 
payment is subject to deduction of 25 percent Netherlands 
Withholding Tax. This 25 percent may, however, be 
reduced fo 15 percent when payment is made to residents 
of the United Kingdom orto residents of Australia, Austria, 
Belgium, Canada, Denmark, Finland, France, Western 
Germany, Ireland, Japan, Luxembourg, Netherlands 
Antilles, New Zealand, Norway, South Africa, Spain, 
Sweden or the United States of America, who deliver 
through the UK-CF depositary the appropriate Tax 
Affidavits to the company’s agency Hill Samuel & Co. 
Limited. The Netherlands Withholding Tax may be reduced 
to 20 per cent when payment is made to residents of 
Indonesia who deliver the appropriate Tax Affidavit in the 
above-mentioned way. 

Payment of the net guilder amount of dividend will be 
made by Hill Samuel &Co. Limited, in sterling at the rateof 
exchange ruling on 27th May 1982, unless payment In 
guilders on an account with a bank In the Netherlands is 
requested no later than 21 st May 1982. 

Eindhoven, 17th May 1982. 

The Board of Governors 




(r 



BMMOUEXT 

Banco Nacional de Comercio Exterior, S.A. 

Mexico, D. F. 

U.S. $ 50,000,000 

Floating Rate Certificates of Deposit due 1984 

In accordance with the provisions of the certificates, notice 
is hereby given that for the interest period from 17th May 
1982 to 17th November 1982 the certificates will carry a 
rate of interest of IWra per cent per annum.The relevant 
interest payment date will be 17th November 1982. 

Agent Bank 


London Branch 



THE KYOWA BANK 
LIMITED 

London Branch 

US$10,000,000 

NEGOTIABLE FLOATING RATE 
- CERTIFICATES OF DEPOSIT 
MATURITY DATE NOVEMBER 15, 1982 

In accordance wife the provisions of the Ce rt ificate s of Deposit 
notice is hereby given that for the six month Interest Period 
.from May 17, 1982 to November 15, 1982 
the Certificates will cany an Interest Rate of -14.9375% per armuin. 
Age nt 


Public Works Loan Board rates 


Effective May 15 
Quota loans repaid 


Non -quota loans A* repaid 


Years 

byEiPt 

At 

at 

maturity! 

• by ElPt 

At 

et 

maturity^ 

Up to 5 

13i 

131 

14 

14i 

141 

14| 

Over 5, up to 6 ... 

131 

13* 

141 

141 

14i 

14i 

Over 6, up to 7 ... 

13? 

13i 

141 

141 

141 

Mi 

Over 7, up to S ... 

13? 

14 

14i 

14f . 

14S 

141 

Over 8, up to 9 ... 

131 

14i 

14 

141 

143 

14J 

Over 9. up to 10 ... 

14 

141 

14 

141 

143 

141. 

Over 10, up to 15 

T4I 

14 

13J 

141 

14i 

M3 

Over 15, up to 25 

131 

13? 

13) 

14 J 

143 

142 

Over 25 

131 

131 

13) 

14? 

14i 

14J 


* Non-quota loans B are I per cent higher in each case than 
non-quota loans A. f Equal instalments of principal. $ Repayment 
by half-yearly annuity (fixed equal half-yearly payments to include 
principal and interest ). I With half-yearly payments of interest only. 


LOCAL AUTHORITY BOND TABLE 


Annual Interest 


Life 


Authority 

gross 

pay- 

Minimum 

of 

(telephone number in 
parentheses) 

interest 

able 

sum 

bond 

% 


£ 

Year 


Knowsley (051-548 6555} 

.. 13 1 

4-year 

1,000 

4-8 


FINANCE FOR INDUSTRY TERM DEPOSITS. 

Deposits d'fl.OOCHCSO.CKX) accepted for fixed terms of 3-10 years. 
Interest paid gross, half- yearly. Rates for deposits received not later than 
28/5/82 

Terms (years) 3 4 5 6 7 S 9 10 

INTEREST % 131 13 { 131 !3.{ 131 13; 131 132 

Deposits to and further information from The Treasurer. Finance for 
Industry pic. 91 Waterloo Rd-, London SE18XP (01-928 78 22, Ex t 367)- 
piMMI Cheques payable to "Bank of England, arc EFT FH 
■i VI is the holding company for ICFC arid FCL 


Companies and Markets 


UK COMPANY NEWS 


Danish computer company 
in £3m private 



A Danish computer company 
has raised £3m In London in what 
is believed to be the first inter- 
national private placing by a 
company in Denmark. Christian 
Horsing, which produces and 
develops a range of advanced 
mini-computers. has placed 
150,000 non-voting shares with a 
group of City and Netherland 
institutions. 

Prior to the placement the 
company was wholly-owned by 
f amily interests of the founder 
and, now president and chief 
executive, Christian Rovsing, 
through the Christian Rovsing 
Foundation. The placing, handled 
by Credttanstalt-Bankverein and 
Bank I tec, is designed as a pre- 
lude to an eventual full quota- 
tion on the London Stock 


Exchange in two years’ time. 

The company, which claims to 
be the fast growing electronics 
group in Denmark, with net 
profit over the last five years 
climbing from DKr 786.000 
(£54,000) to DKr 8.2m (£580,000) 
on sales up from DKr 66.2m to 

DKr 276.1m. 

Employing about 800 people 
the group has been increasingly 
successful in securing a wide 
range of major customers for Us 
data communication equipment 
that enables incompatible com- 
puter systems to he Linked. 
Currently 28 per cent of its busi- 
ness 'comes from defence con- 
tracts for Nato. 

It has also won a contract to 
supply equipment for the data 
communications network of the 


Stormgard’s profits fall 
to £27,744: restructure 


Taxable profits of Stormgard, 
the investment holding and deal- 
ing concern, have declined from 
£55,824 to £27,744 for 1881, on a 
reduced turnover of £856,935. 
against fl.fim. 

The market value of the com- 
pany's stock, which consists 
wholly of listed securities, was 
£68,138 (£122,541). 

Tax charge was £10,985 
(£20,266) and earnings per lOp 
share fell from 2.32p -to 0.75p. 
There is again no dividend on 
the preference or ordinary shares 
for the year. 

The directors say they consider 
that the arrears of the preference 
dividends and the present capital 
structure of the company inhibit 
any major development -They are 
therefore proposing that the 
preference shares be converted 
and sub-divjded into ordinary lOp 

Receivers for 
Tosan Group 

Mr A. A. Benzie and Mr P. 
Ramsbottom, partners in char- 
tered accountants Peat Marwick, 
Mitchell and Co., Manchester, 
have been appointed joint 
receivers of the Tosan Group of 
Companies, whose trading sub- 
sidiaries — Windmaster. Calder 
Riverside and Multi trend — are 
engaged in weaving, dyeing' and 
merchanting of sail cloth and 
other specialist fabrics. 

The receivers are continuing 
to trade and are endeavouring 
to sell the business as a going 
concern. 


shares, ranking pari passu with 
the existing ordinary. 

To compensate preference 
shareholders to some extent for 
the loss of dividend and other 
rights attached to their shares, 
the company will issue to them 
six ordinary shares for every one 
preference held on May 13 1982, 
by way of a capitalisation. 

Under the proposals, existing 
ordinary shareholders will own 
around one quarter of the issued 
equity capital, but will be wholly 
relieved of the prior rights of the 
existing preference holders. The 
preference holders will give up 
their prior rights and will instead 
own some three-quarters of the 
issued equity capital. 

The directors say these actions 
will create a more favourable 
base from which to consider the 
future development of the 
company. 

Dorada trend 
is encouraging 

Mr Thomas Kenny, chairman 
of Dorada Holdings, the motor 
vehicle distribution, engineer- 
ing and merchanting group, said 
at the group’s AGM that it lost 
money in January and February 
but was back in tbe black by 
March. This was the company's 
first profitable month since 
November 1979. 

It was too early in the year 
to make any predictions but the 
trend was encouraging, he 
stated. 


LAMBERT HO WARTH 

U1111 PROGRAUHE HI 


Results for the year 



ended 31st December 

1981 

1980 


£000 

£000 

Turnover - 

1$103 

16,596 

Profit before Taxation 

627 

414 

Profit after Taxation 

435 

484 

Net Assets Employed 

4,447 

4,058 

Issued Capital 

600 

600 

Per 20p Ordinary Share: Earnings 

14v5p 

16.1p 

Dividends 

4.75p 

4.06p 


Extracts from the Statement by 
Mr. J. M. Jackson, Chairman 
Profits in 1981 have increased to £627,110 from £413,893 in 
the previous year on sales reduced from £36,596264 to 
£16.103,622. We have considered it prudent to continue the 
rationalisation programme by closing two factories, concentrat- 
ing the supporting activities formerly carried on there at 
other plants in the Group. This completes our current plans 
for restructuring. 

The Group has reduced its working capital requirements and 
interest charges have been reduced from £255,413 to £137,510 
in 1981. 

During the current year we are looking to increased produc- 
tion volumes which will help to offset continuing pressure 
on margins. The Group has increased the resources devoted 
to design and marketing, and I am confident that benefits 
will flow from this in years to come. 


The Group Is a substantial supplier of footwear to Marks & 
Spencer p.Lc. and also to leading wholesale and multiple 
chains throughout tbe country and prominent mall order 
groups. Part of its production is sold through wholesalers 
under the registered trade mark “ Osbornia H and a significant 
portion of slipper production carries the 14 Gann ex n brand for 
which the Group has sole distribution rights. 

HIT BOOTH llRIIll' pk 
BllM k umm LUClSHtBU OF MM 

Copies oj the 1981 Report and Accounts arc available Jrom 
the Secretary. Lambert Hmpartk Group p.Lc., Rossendale 
Works, Waterfoot, Rossendale, Lancashire BB4 9U. 


BASE LENDING RATES 


A.B.N. Bank 13 % 

Allied Irish Bank 1:5 % 

American Express Ek 13 % 

Amro Bank 13 % 

Henry Ansbacher 13 % 

Arbuthnot Latham 13 Vo 

Associates Cap. Corp. IS 

Banco de Bilbao 13 % 

BCCI 13 % 

Bank Hapoalira BM ... 13 % 
Bank Leu mi (UK» pic 13 % 

Bank of Cyprus l.J % 

Bank Street Sec. Lid. 14 % 

Bank of iV.S.V 13 Vo 

Banque Beige Ltd. ... 13 %. 
B&nque du Rhone et de 

ia Tamlse SA. 131*0 

Barclays Bank 13 % 

Beneficial Trust Ltd. ... 14 % 
Bremar Holdings Ltd. 14 % 
Brit. Bank of Mid. East 13 % 

l Brown Shipley 13 % 

Canada Perm’t Trust.. 13f 
Castle Court Trust Ltd. 134% 
Cavendish G'tyTst Ltd. 14 % 

Cayzer Ltd. 13 % 

Cedar Holdings 13 % 

I Charterhouse Japhet... 13 % 


Choulartons 


13 


Robert Fraser 14 % 

Grindlays Bank tl3 % 

Guinness Mahon 13 % 

Hambros Bank 13 % 

Heritable & Gen. Trust 13 % 

Hill Samuel *13 % 

C. Hoare & Co tl3 % 

Hongkong & Shanghai 13 % 
Kinssnorth Trust Lid. 14 1 
Knowsley & Co. Ltd. ... 134% 

Lloyds Bank 13 % 

Mallinhal! Limited 13 % 
Edward Manson & Co. 14 % 

Midland Bank 13 %■ 

Samuel Montagu 13 % 

Morgan Grenfell 13 % 

National Westminster 13 % 
Norwich General Trust 13 % 

P. S. Rcfson & Co 13 % 

Roxburghe Guarantee 13?% 

E. S. Schwab 13 % 

Slavenburg's Bank ... 13 % 
Standard Chartered % 
Trade Dev. Bank ...... 13 % 

Trustee Savings Bank 13 % 

TCB Ltd. 13 % 

United Bank of Kuwait 13 % 
Whi teaway Laidlaw ... 13J% 

Williams & Glyn's 13% 

Winirust Secs. Ltd. ... 13 % 
Yorkshire Bank 13 % 

Mom bets d( Hid Accepting Houses 
Com mi; tee 

7-de> dODoctia 10%, l-montii 
10 25% Short lorm £3.000,12 
mon;i 12 6*.. . 


Citibank Savings 5123% 

Clydesdale Bank 13 % 

C. £. Coates 14 % 

Comm Bk of Near East 13 % 

Consolidated Credits... 13 % 

Co-operative Bank “13 % 

Corinthian Secs. ... 13 % t 7-drv dOposils on Bums ol: urmor 
The Cyprus Popular Bk. 13 % doom i3V.:-. no.ooo up to 

Duncan Lawrie 13 % eso.ooo it-,. 

Eagtl Trust n % - 

Exeter Trust Lid 14 % 3 21 -dev deposit* war n.ooo in,%. 

First NaL Fin. Corp.... 15*% § Demand doponu iDVii, 

First Nat. Secs. Ltd.... f51% *■ Monsaga base rata. 


DHSS in Britain and for two 
major supermarket chains in the 
U.S.. in addition to supplying 
units to a Shell subsidiary and 
Ericssons in the Netherlands for 
their corporate networks. 

Mr Rovsing, who founded the 
company in 1963 after working 
with IBM. sees an enormous 
potential for the equipment— 
wbich his company developed, 
from scratch— with the forecast 
growth of -.electronic mail and 
other types of computerised data 
communication sy stems. 

The placing will enable the 
company to raise, additional 
borrowing, now 34 per cent of 
the enlarged capital, to fund the 
expected sharp expansion of 
business until a full quote is 
obtained. 

London Private 
Health ahead 
of forecast 

In its first trading period, the 
London Private Health Group 
reports a taxable profit of £41,500 
. for the year to March 31 1982. 
Turnover was £884,300. 

The profits include the trading 
results from July 22, When the 
Garden Ctinic was acquired. 

Lord Constantine, chairman, 
says the performance compares 
favourably .with the forecast of 
£25,000 pre-tax profit given In 
September 1981 in connection 
with the placing of 4rn ordinary 
shares and the flotation of the 
company on the Unlisted 
Securities Market 
As indicated then, no dividend 
is being recommended, for the 
year but, barring unforeseen 
circumstances, it is intended to 
pay one in 1983. Earnings per 
share are given as 2p (fully 
diluted l-5p). Tax took £1,000. 

The group is reviewing oppor- 
tunities for development, in the 
private health sector and expects 
to make an announcement about 
them soon. 

Ruberoid ‘up 
in first quarter’ 

FIRST-QUARTER results for 
Bnberotd were ahead of those 
for the similar period last year, 
despite the adverse effects of 
January's bad weather, Mr 
Thomas Kenny, chairman, told 
the annual meeting in London. 

As reported, the building 
products, specialist contracting, 
resin, paper and plastics group 
lifted pre-tax' profits in 1983 by 
48 per cent, from . £2.27m to 
£3. 36m. 

Mr Kenny, said the group had. 
recently won the contract for 
roofing and cladding work at 
Tomess nuclear power station la. 
Scotland, worth about £6m over 
three years. 


BOARD MEETINGS 

Tbe following comp* me* have miffed 
dates of board fflMttagt to tbs Stock 
Exchange. Such meetings on usuaHy. 
held lor the surpass of ■ considering 
dividends. Offl&el rntUCAbons are not 
available at U> who Aar dividends ere 
interims or fins*) and the. subdivisions 
shown below ere based manly on last 
year’s timetable. 

TODAY 

Interims:— Australia and -New 
Zealand. Banking,. BOC. ' Matthew 
Brawn, Western Selection and Develop- 
ment. 

Final*:— Biabowgats ■ Trust A. F. 
Bulgin. Fortmrm and Mason, Land 
Securities Invssonem Troat, SeKn- 
court. Weeks Associates, Whitbread. 

FUTURE DATES 

Interim*:— 

Management Agency and Music May 21 

Mortn Tea May 19 

Scottish Investment Trust May 27 

Finals:— 

Allied Irish Banks. May 26 

Associated British Foods May 24 

Bento* May 21 

Extel May 27 

TR Indu strial and Gen. Tnm-May20 

Cramphorn 
deeper in 
the red 

Heavier losses of £111,103 
against £69,492 are reported by 
Cramphorn, distributor and 
retailer of garden and pet 
supplies, for hte' 26 weeks to 
January 2 1982. The .interim 
dividend is held at 5p — the 
company’s shares . have a USM 
placing. 

Turnover moved ahead from 
£4.21m to £4.61m, but there was 
a trading loss of £35,143 (£7,263). 
Interest charges increased from 
£62,223 to £75,960, but no tax was 
again payable. 

The board says the increase In 
turnover is largely due to sales 
from new garden centres at 
Letchworth and Milton Keynes, 
for which there' were no cor- 
responding sales in the previous 
year. The continuing transfer of 
business from shops to garden 
centres has further accentuated 
imbalance between the two half 
year's results. 

The board says that doe to the 
severe winter weather, unavoid- 
able losses of nursery stock were 
suffered in January, bat since 
then, sales have been buoyant, 
particularly during the last few 
weeks. 

This indicates that total sales 
for the year should reach their 
target 

A further garden centre was 
opened at Crewes Hill, Enfield in 
April, and the re-built and 
enlarged Chelmsford garden 
centre was re-opened a few days 
later. The directors say sales 
from both centres to date are 
“most encouraging.” 



FT Share 
Information 

The following securities have 
been added to the Share 
Information Service. 

Nationwide - Building Society 
14*% (14/3/83) * and 14*% 

(4/4/83) (Section: Loans — 
Building Societies). 

Trust Securities Defd. Conv. 
(Property). 


BAT Industries is to be asked- 
to outline details of its policy 
of boosting cigarette consump- 
tion in' -less developed countries 
at the company's annual meet- 
ing on June 9. . 

; The questions have been in- 
spired by the. World Develop- 
ment Movement,, a British based 
pressure group on . issues relat- 
ing to the developing countries 
in tbe Third World. A resolu- 
tion, which wiH be put at the 
AGM, calls- -for BAT to make 
available within the next six 
months a repent outlining the 
company's policy in the Third 
Worid.- 

Xh his annual statement cir- 
culated to shareholders over the 
weekend with the full accounts 
Sir Peter Macadam, the chair- 
man, says that the. picture for 
the group is one of " significant 
underlying growth " aided by 
exchange rate movements. In 
1981 group pretax profits 
expanded by 43 per' cent to 
£6S4m, on a turnover 21 per cent 
higher at £9.27 bn. 

The chairman describes this 
as a positive advance because 
the true rate of growth has been 
substantial. Even allowing for 
the benefit of exchange rate 
variations, trading profit has 
increased by 15 per cent and 
attributable profit by 29 per cent 
He says that the figures bear out 
tbe confidence expressed last 
.year in the strength of the 
group’s international and indus- 
trial diversity. • . 

Sales growth, in each Industrial 
aera of the group has been rela- 
tively evenly maintained, but the 
contributions to trading profit 
arc not so uniform, says Sir 
Peter. 

Tobacco has increased its 
share slightly, retailing sig- 
nificantly and other trading 
activities, including cosmetics, 
have done welL A substantial 
drop in paper profitability is a 
reflection of an extremely compe- 
titive environment in which sales 
growth has been maintained to 
tiie detriment of margins. This 
also applies to some degree to 
packaging and printing. 

A geographical analysis 
demonstrates that the principal 
improvements came from the UK 
(primarily tobacco operations), 
North America and I .a tin 
America (mainly Brazil), with 
some improvement also in Asia. 

Referring to the group's 
Argentine tobacco operations the 
directors state in their report 
that tbe results were affected 
severely by a series of heavy 
devaluations of the Argentine 
peso. Volume was lower due to 
competitive and -generally 
depressed economic conditions 
and this, together with Increased 
costs and excise not fully com- 
pensated by price increases, 
caused >-a substantial ; reduction 
in trading profit 

Turnover in Latin America as 
a whole showed an increase from 
£l-5bn to £L73bn, representing 
19 per cent of the total, while 


trading profit went up from £78m 
to £131m or 21 per cent (17 per 
.cent) of the total. Total assets 
employed there rose from £429m 
to £4S6m, representing 12 pgr 
cent (13 per cent) of the total 
group assets of £4-99bn (£4.06bn). 

Capital- spending by the group 
increased from £262® to £27Sm. 
An analysis shows that £139m 
(46 per cent) . was spent on 
tobacco, foEowed by £65m (23 
per cent) on retailing. 
Geographically the UK accounted 
for £66m (24 per cent) and North 
America for £110m C40 per cent). 

The report discloses that the 
group has four employees earn- 
ing between £60.000 and £70,000. 
The chairman's emoluments 
increased from . £116,336 to 
£137,906. Four directors . are 
shown to be earning between 
£65.000 and £80,000 while a 
further four had earnings of 
between £90,000 and £110,000. 

Meeting, St John's, Smith 
Sqnaxs, Westminster, June 9 at' 
noon. 


Tollemache 
& Cobbold 
recovery 


PRE-TAX profit for Tollemache 
and Cobbold Breweries, a wholly- 
owned subsidiary of Elierman, 
recovered to £577,000 for 1981, 
compared with £17,000 pre- 
vaously. At halfway, the company , 
reported a profit of £16,000, 

against a £110,000 loss. 

Turnover for the year was ■ 
higher at £23.73m (£21.21m). • 
Earnings per share were given as 
4.41p. The ordinary dividend - 
absorbs £100.000 (nil). 

Tax was nil, against an £8,000 i 
credit, and there were extra- 
ordinary credits of £99,000 
(£346,000). Attributable profit 
came to £676,000 (£371,000). 

Mr W. EL G. Falconer, chief ' 
executive* says sale of the com- 
pany’s beers increased by 4 per : 
cent overall. The underlying 
profit base is now strong, and he 
is confident 1982 will yield even 
greater success. Trade for the 
first four months has been most 
encouraging. 


SPAIN 

1982 

Higtv Low 
350 333 

.362 . 333 
321 302 

337 3 CG 

115 no 

367 315 

23S 200 

395 355 

248 lie 
180 127 

69 60 

66.2 58.2 
SO 38 
88-2 - 6J .7 
59 SO 
104.5 87 

V. 101 94 

40 5.50 
74 68 

68 62.5 


May 14 
P/iCO 
7. 

Banco Bilbao ...... 344 

Banco Central 538 

. Banco Esierior ... 202 

Banco Hispano ... 310 

Banco Irtd. Cat. ... 114 

Banco Santander . 335 

Banco Urauijo ... 204 

Banco Vizcaya ... 258 

Banco Zaragoza ... 244 

Dtagsdos ' 148 

Espanola Zinc ... 69 

Fecsa 65 7 

Get; PraeJadoe 38 

K*drola " "... ;i57.2 

JbowNioro 53.2 

Peuoleos SO 

Petrotibor 99 

Sogefisa — 6 

Telefonica 71.2 

Union Elect 66 


RECENT ISSUES 


EQUITIES 


■* J n i n I 

Issue = 

price o-o ;S =Si 

p Is'Si 35°: 


19 S3 


k al te. j Hjgh | Loy, 


140 'F.P.il4l5 
C Z3Q l - - 

18 jF.P. 15i'4 
J105 |F-P.l21<5 
)260 ,F.P.j 4/6 


60 ;f.p„ 

«102 F.P. 
4130 F.P.' 


28/6 

28(5 


*87'apiF.P. _ 

$250 'F.P.|l4/3 
5 I 'F.P.; - 
5120 ;f.P. 7/5 

; y !f.p.- - 

136 F.P.il5l8 
•A F.P., - 


]l70 

<270 

< 30 

109 

375 
62 
Il55 
1160 
• 98 
17 
>260 

1275 

1134 

i 30 

!141 
. 90 


,140 

|265 

19 

105 

293 

60 

122 

140 

i 96 

10 

1245 
'267.. 
120 
30 
(134 
i 70 


stock 


is a 

,o 


AIM Group lOp 169 

Assoc. Heat Service* 375 
Cambrian * Gen.7tp 30 
'#Cau Group 10p.... 10B 

■frConL Microwave... 370 

•{■DeBretuAndreiiap 60 

iDew (George).. j126 

i*Druck.Hldga. 150 

•El'tra-Pr'ieCpUSSlUiU 96 

iGr*p Inv Option Crt* 1 16 

l*lo Technology >247 

i£*Jetnens Drilling.. ,.;265 

I* Leisure fnd*. .122 

! Osprey Asset* 30 

IStanaarel Soca 134 

jZambla Cone Cpr lOK 70 


° i 


SsjsHlniS 

SSlB-ffTS 

Fir 9 "! * 


bdB.TB 1J9, 

b9.0 1 2,1; 


+ 1 Jud2.Si 2.81 

166.25, 1 3.9 

Ib2.5 2.1 

-2 ; g6.7 ! 4JW 
+ 2 <b2.3 I 2.8 
■—..iuqUc 8.9 
" — I 

;bl7.5l 2.3i 
jbSjO 

!f1.4 

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A7jH.9 

3.3ilS,5 
2.013.7 
6.01 1 1A 
6-5J 5.5 

2.2 56.0 

0.91124 

6J 

5.9) 8J 

6.7, - 

3.040.2 


PENDING DIVIDENDS TIMETABLE 

Dates when some of the more important company dividend 
statements may be expected in the next few weeks are given in the 
following table. The dates shown are those’ of last year’s 
announcements except where the forthcoming board meetings 
(indicated thus*) have been officially published. It should be 
emphasised that dividends to be declared will not necessarily be 
at the amounts in the column headed " Announcement last year." 


FIXED INTEREST STOCKS 


Issue 

price 


, e a L a • 

IlliiS 


*■ to! 

. <a ! 

0 •>■*! 
Jk 

ii. .• 

‘High 

Low | 

*99.593^28 ! 

1VI 

29 

life 

'lOO 

xia 1 

in 

1814 

Ills 

or 

!F.P. [ 


136 

136 

*ibo 

iF.P. ■ 


47 

39 

*100 

<F.P. 

■H-. 

46 

46 

1100 

,£10 1 

— 

11 1 

U 

JlOO 

IF.P. 

-W. 

100 Te 

1004 

= 107 

;f.p. 

/ 

09r4 

1 

113l!i 

1091: 

i 


Stock 


S— ' " 

5 a ! 


21i> Crod. Fonder de France 14& Lon.2007i 24i*| 
T1 Eart Anglia Water 9% Red. Prf. 1987 J 12 U 

■ — ■ “ - - <136 I 

47 ! 

'pc Net cum. PTT. iil| 48 I 
Mid -Southern Wfr. 9% Pref. 1987 11 I 

Nationwide Bdg. Soc. 14 (2 6/4*83 il 100 V 

it Queens Moat lot* Cnv. 89-91 113 hr 


can nngna water Kea. pit. iuev_ 

First Nat. lSftpo Conv. tins. Ln. 1987,.<1 

Grt. N'rth'n Inv. 4pc Net Cum. Prf. £1| 

Do. 4.7pcNetCum.'Prf.£ii 


“RIGHTS” OFFERS 


Issue , 
price . 
P 

IO 

170 ' 
125 
AS1 1 
135 , 
50 

20 ; 

5 - 
500 : 
500 I 
120 1 
145 

IB 1 

6 ; 
07 I 
98 

170 • 
10 • 
155 ; 


c §• | Uteat 
; R Qnunc. 
«*■*■ 

< a • 0 


j 1982 | 

; High J Low ; 


Stock 


F.P..27i4 
F.P. 1 13/5 
F.P.21/4 
Nil ‘24/S 
Nil - 
F.P. '29/3 

F.P.SO/4 

F. P.,1 Of 6 

Nil ;20/S 
Nil - 
F.P. 7/S 
F.P.12IS 
Nil :21f5 
F.P. 19.-4 

F.P. 89.4 

F.P.16/4 

F.P..'14/S 

F.P.24;3 

F.P.'IO.S 


28/5 

24/8 

28/5 

7/6 

10/5 

28/5 

21/6 

18/6 

4-6 

7ifl 

4;6 

21/6 

27/5 

4/6 

11/6 

23/4 

IO16 


.25** .15 /Ansbacher iH.) 5p 

I 190 180 'Bank Leu mi (UKi £1., 

160 I 135 '.Beazer iC. H.j 10p.... 

ISispmj 3iapm|Bond Corp 

I 44pm I 33pm,Carloas Caps! lOp 

1 60 1 60 .First Castle lOp. 

| 86 1 41 iFiahertA.) 

'6 6 iGrovoboll f6p) 

| 90pnT 75pm Hammer*on Prop. .. 

1 75pm( 30pm: Do. A. 

169 ) 144 Lillof iF.J.C./ 

187 1 176 'low fWm.) 2 Op 

14pmi 3pm,North Kolguri 

8 | 61? piatlgnum 5p. 

,S9 , 3| 26':|Queon5 Moat-...-. ... 

107 I .Riley Lotsure 

284 1 272 Stool Bros. 

. 12 is. 10>;.3turia lOp 

, 160 , 146 iVickert lElj 


-£n. ;+or 

Sa j ' 


las -4 ! 

160 :+2 
9 ijpm 1 
35pm, .... 

41 ^1 

si e ; 

75pm —b 
30pm —S 
167 -2 

178 -4 
3pm —I 
71, ..... 

89 

106 

227 ... . 

IHi-Ij 

153 


up 

LiO.COO and ovor 


£1.000 and over 


flanuncrailon don usually last day For dealing free ol stamp duty, b Figures 
baaed on prospectus estimate, d Dividend rate paid or payable on part ol 
capital: cover based on dividend on lull capital, a Assumed dividend end yield. 
t Indicated dividend: cover relates to previous dividend, P/E ratio 5**04 on Israel 
annual oamings. u Forecast dividend: cover bated on previous veer's eammos. 
FD/vidond ond yiofd based on prospectus or other official estimates for 1982, 
Q Grass. T Figures assumed. * Figures or report awaited, t Cover allow* lor 
conversion 0 r shores not now ranking for dividend or ranking only for restricted 
dividends. § Piecing price, p Pence unless atherwlBo indicated. 1 lamed by 
tendor. || OHered u holders of ordinary shores et a “rights." ■•issued by woy of 
eapnaMsfltosB. 55 Ralntrodomd. 1 1 issued In connection with reorganise Don. 
merger or take-over. HR Introduction. □ issued to former preference holders. 
■ Allotment hitters (or fully-paid). • Provisional or partly-peld allotment totters. 
♦ With warrants. ffUnilings under special Rule. * Unilateral Securities 
Market ft London Listing, t Effective Issue price alter scrip, t Formerly 
dealt in under Rule 163(2 ) (b). Unit comprising five ordinary and three 
Cap. shares. A Issued free as an entitlement to ordinary holders. 


THE THING HALL 
USM INDEX 
i I23.n (-0.2) 

Close or business 14/5/82 

BASE DATE 10/11/80 100 
Tel.: 01-638 1591 


LADBROKE INDEX 

Close 586-581 ( +3) 


Date 

•AE May 27 

Allied Lyona. _.June. 2 
■Allied Irish 

B*nk* .May 26 
■Aosoc. British 

Foods ..May 24 
“ANZ Banking. ..May 17 
Avon Rubber... Juno 3 

■BOC May 17 

BPS Inds June 24 

Baker Perkins Juno 25 

■Bass June 8 

• Both and 

Portland... June 5 

■Boots Mav 27 

Brit. & Com. 

Shipomg.. June IS 
■Brarkliouse . May 20 
Brown , 

Shipley... June 11 
BuirerfieJd- 

Harvey...June 16 
Cap. and Counties 

Prop... -May 29 
Carfess Capef June 2 
Charter Cons. June 23 

Chloride June 24 

Chubb .June 24 

Coalite June 3 

Cohen (A.) ..June 11 
■Common . 

Brw»....Mey J9 
■Courtaulds ...May 27 
Dawson Inti.. ..June 17 
■Debenhams ..May 21 
De La Rue. . June 2 
Electro- 

comoonimn ..June 25 
EHion fB.) ...June IQ 
English Chine 

Cljjrs ..June 18 
•E*t«> .. . . Moy 27 

Ferguson 

Industrial. June IS 

Fcrrar.ti Juno 24 

■ GEI Inti ..June 23 
Gt. Portland 

Estates... June 10 
Guinness f A ) June 1? 
Hambros ...June 23 
Hanson Trust. ..Juno 10 
Harmons and 

Crosticld ..June 2 
■Heath (C e 1 May 13 
Hickson and 

Welch. . June 4 
Hill Samuel ...Juno 11 
International 

Paint ..May 28 


Announce- 
ment last 
year 
Int. nil 
Final 3.0 

Final 4.5 

Sec Int, 2.8 
Int. 14 cents 
Int. nil 
lot. 2.31 
Final 5.0 
Final 3 0 
Int. 2 53 

Ini. 2.9 
Final 4.655 

Final 7 0 
Int. nit 

Final 7.5 

Final 1 X) 

Final 2 A 
Final 1.75 
Final 6.6 
Final nil 
Final 3 478 
Final 2.8 
Final 4 9 

li»r. 5.D 
F-nal 1.0 
Final 5.25 
Final 4 324 
Final 14.4 

Final 5.5 
Final 3.0 

Int 2 7 
Final 5.75 

Fmel 3.3 

FinoT 4 0 

Final 3.555 

Finer 4.0- 

Inc. 1:575 

F.nol 160X1 
Int. 4.25 

Final 20.5 
Final 7 4 

Int 2.5 
Final 4 J 

rnuf 2.545 - 


Date 

International 

Timber,. June 16 
Johnson and 
Firth Brown.. .May 22 
Johnson . 

Manhay June 17 
Kenning 

Motor.. June IB 

■Land 

Securities ..May 17 
■London and 

Northern.:. May 19 
■London O' seas 

Freighters... July 14 

“MFFC June 1 

■Marley June 2 

‘Meiol Box June 7 

Norcros June 25 

•Northern 

Foods. .June 10 

Fegler- 

Hottorsley.. June 10 
■Pilkingten 

Bros. ...June 11 
•Plusuroma ...May 20 

• float ay May 27 

Powell 

Duffryn. June 24 
Premier Cong. June 8 
Bocal ’ 

Elect ionics... June 23 
Ranks Ho vis 

McDeugail.„May 21 

■RHP May 27 

•RBdfoarn Nat. 

Glass... May 19 

Red /and June 2S 

•Rend Inti Juno 7 

Renold June 2S 

Samuel (HI) ..June 10 

KX) Group June 11 

5ketchley .... June 9 

Stakis May 26 

■Tate end Lyle May 26 
Tosco Stores.. -June 17 
Trusthouse ‘ 

Forte ..June 25 

UBM May 28 

Wedgwood ..June 19 
V/estland ......June 10 

“V/h-t bread Moy 17 

Whr-ocroft . .. June 22 
■Wlvrhmptn. and 
Dudley Brm....May 25 


Announce- 
ment fast 
year 

Final 2.0 

fnt. t 3- 

Final 6.5 

Int. 1.7S 

Final 7.0 

Final 2.35 

Final 1.072 
Int. 2.0 
Int. i.O 
Final 6.51 
Final 3.56 

Int. 1.8 

Final 5.5 

Sec int. 5.5 
Int. 2.5 
Fine/ 4.411 

Final 9 S5 
Final 107. 

Final 3 4 

Int. 1 524 
Int. 2.0 

Int. 3.0 
Final 4.67 
Final 9.0 
Final nil 
Final 4.7S 
Final 2.91 
Final 6 2 
fnt. 0.45 
Int. 4 0 
Final 1.55 

Int. 1.5 
Final 1 0 
Final 2.425 
Inx. 2.5 
Flint 4.6 
Final 2.8 

Int 1.86 


• Board meeting intimated, t Rights 
issue since made. *. Tax free. 3 Scrip 
issue since made. 1 Forecast. 


M. J. H. Nightingale & Co. Limited 

27/28 Lovat Lane London EC3R 8EB Telephone 01-621 1212 


COOO'a 

— - - . 


Change Gross Yield 

W- . 

FuHy 

cipiulisation Company 

Price on week div.fp) % 

Actual taxed 

1.283 

Ass. Brit. Indi CULS... 

129 

— 

10.0 7.8 

— — 

4.168 

Airsprur.g ..j 

72*d - 1 

4.7 6 S 

11.4 15.8 

1,075 

Armil aga & flhottos ... 

43 

— 

4.3 10.0 

3.8 8.1 ' 

12.464 

Bayern Hill - 

2L4 

* 1 

9.7 48 

9.9 12,1 ' 

• 1.323 

CCL IT. Opt Conv, Pref. 

107 

+ 1 

15-.7-. 14.7 

—TO . 

4,133 

Cmdico Group 

265 

+ 5 

2 BA VO 

10.7 120.. 

4.798 

Deborah Services 

62 

• — i- 

6 0 97 

31. 5JB 

4.111 

Frank Horse! 1 ...' 

123 

— 

6 4 SO 

11.8 233 

10.973 

Frederick Parker. 

75 

— 

64 8.4 

. 3-8 7.A 

* 396 

Georgs 3lB>r ' ... ........ 

54 

*— 

— 

— —4 

4,021 

red. Precision Castir.ss 

39 • 

-e- 1 

^.3. .7.4 

. 7.1- 10-8 

2.616 

teia Conv P»af. ...... 

. 109 

— p 

15.7 14.4 

— — 

2.530 

Jsclraon Croup 

10 O 

. ♦ i : 

■ 7.0 7.0 

3.1 7 » , 

15,596 

Junes Barroufjtr ■ 

M3 

. 

8.7 7.7 

a. 2 10.4 ; . 

2.468 

Robert Jenkins 

242 

- 4 

31.3 12.9 

3.4 ' BA.; 

3.420 

Strutted* " Al' 

b7 

f ; 

. 5.3 1.9 

19.3 9.5' i 
5.1 93- < 

J.M 1 

Tordny '& ■ C^rliSfe 

159 

— 

10.7 .5.7 

2.992 

Twmlocir Qrd. 

14 

•— 

— ' 

— . * 

2.164 

Twin loci, ULS - 

SCI 

_ 

15.0 'S3 


3.815 • 

Um lock Holdinoa 

-25 

— 


-4.3. -. t Z4 

. 10.394 ' 

Waiter Alasaadsr . 

ta • 



-3.4 - 95. 

5.414 

vr. s. Yoate* ... 

232 

,+ 2 ■ 

US - 6 3 

6.1 .12.1 


Price! .new nfellotXa on .pruYsl pigv 4614fl.~ ' r 

























)!} Nd 

erv 


Financial Tunes Monday May 17 1982 

. . 71. ■*.*!/" 

Gespaaies and Markets 


CREDITS 

Latin Americans 
brave quarantine 


INTERNATIONAL CAPITAL MARKETS 


INTERNATIONAL BONDS 


BAHRAIN BANKS 


A bout of indigestion 


LATIN AMERICAN countries 
last week showed every sign of 
bravely trying to overcome the 
financial quarantine imposed on 
them in the Eurocredit market 
since Argentina invaded the 
Falkland Islands on April 2. 

In Zurich on Friday, Sr 
Roberto Alemano, Argentina's 
Economy Minister, told Swiss 
and other non-British hankers 
that Argentina could cope with 
the effects of Bri tain ’s assets 
freeze so long as short-term 
lines of credit to Argentina 
were maintained. 

Argentina did not need a 
general debt rescheduling, nor 
has it asked for ‘International 
Monetary Fund assistance, be 
said, and for the time being it 
can do without further medium- 
term loans. 

Elsewhere other countries 
have added their name to the 
list headed by Mexico and 
Venezuela of those seeking 
credits in the Euromarket 

Peru is sounding out backs 
through Wells Fargo on a 
5320m, six-year loan with a 
margin of 1$ per cent over 
Eurodollar rates or 1} per cent 
over U.S. prime. Ecuador has 
mandated E. F. Hutton in Paris 
to raise a S400m credit on 
undisclosed terms to refinance 
the debt of private sector 
industry that has been hit by 
the devaluation of the sucre. 

Yet developments such as 
these have left the Eurocredit 
market at best only partially 
convinced. While bankers 
agree that Argentina has so far 
had no problems servicing its 
loans from non-British banks, 
many still fear that this will 
change if the F alkl ands crisis 
is not resolved quickly. 

The margin on the Peruvian 
credit is fully } point higher 
than the maximum set only six 
weeks ago for Peruvian loans 
by its Prime Minister, Sr 
Manuel Ulloa. This reflects the 
country's own serious economic 
problems as well as the general 
caution of banks following the 
Falklands crisis. 

The Ecuadorian credit is 
below the amount originally 
sought, which itself was 
whittled down to $500m from 
5900m after initial soundings in 
the market E. F. Hutton is 
unlikely to syndicate the deal 
until the Falklands crisis has 
quietened down, and the same 
applies to another S200sn short- 
term credit already mandated 
to E. F. Hutton by the same 
borrower. 


Mexico's $2bn credit Irfan was 
making progress last week— it 
is to be discussed again at a 
meeting of banks in New York 
today— and Brazil is raising a 
further S3 00m for its electric 
utility Eietrobras. But for the 
rest, banks apparently prefer 
Europe as a calm haven from 
the stormy waters in tile South 
Atlantic. 

Spain’s $4 50m credit met 
with a much higher market sell- 
down of 60 per cent than pre- 
viously expected. France has 
managed the finest ever margin 
over U.S. prime rate for its 
latest public sector borrowing, 
a 5600m credit for the state 
financial institution Credit 
National. 

This deal was mandated last 
week, to Banque de Llndochlne 
et de Suez, Chase Manhattan 
and Mamtfacturers Hanover, 
and marks only the second time 
that a French state borrower 1 
has agreed to a margin over 1 
the expensive U.S. prime rate 
on a publicly syndicated loan. 

The prime margin is only 0.1 
point compared with i point on 
the previous deal which was 
launched last December by 
Credit Fonder de France. 

The Libor tranche bears a 
standard margin of 1 point bat 
built into tiie credit is a maxi- 
mum flexibility for France to 
choose both the timing and the 
amount of funds actually drawn 
over prime. 

If anything, the conditions 
on the French deal are slightly 
more favourable to the borrower 
than before, .and banks are 
watching to see whether other 
European borrowers will now 
fair equally well. Among forth- 
coming credits is a new 5300m 
package for Spain’s Institute de 
Credito Official and a large 
credit for the Kingdom of 
Belgium. 

On the one hand Belgium 
could benefit from a ‘‘flight 
into quality,* but on the other 
several bankers say that its 
practice of raising money 
privately has now left it look- 
ing rather over-borrowed. 

Elsewhere Italy’s state rail- 
way, Ferro vie, has launched a 
$3 00m package through Banque 
de Paris et des Pays-Bas. This 
combines a $100m, six -year 
floating rate note with a margin 
of } per cent over Libor and 
a 5200 m, six year credit with 
a margin over U.S. prime rate 
of J per cent 

Peter Montagnon 


THE EUROBOND market 
I ended last week nursing a 
I rather heavy bout of indiges- 
tion. Excluding a 5400m zero 
coupon issue for Sears Roebuck 
launched on Monday, investors 
were offered a further 5925m 
In new fixed interest paper to 
add to the $990m on offer the 
week before. 

With one or two exceptions 
most of the new issues met 
with varying degrees of resist- 
ance as the long-awaited 
decline in interest rates 
remained a chimera on the 
distant horizon. 

Six-month Eurodollar interest 
rates actually rose over last 
week, putting on a } point to 
14} per cent, and in the 
secondary market dollar Euro- 
bonds shed } per cent on 
average. 

Some newer issues were 
, under even greater pressure, 

I however, and dealers were 
! citing the $100m Bank of 
1 Montreal issue, the 5100m 
GMAC bonds and the 550m 
Illinois Power issue as being 
among the few to have met 
i a reasonably good reception. 

“For the rest," said one issue 
manager, “the market needs a 
convincing downward thrust of 
short-term rates to move the 
overhanging paper.” 

A case tn point was the 
5500m semi-private placement 
for Mobil offered in three 


New Fixed Interest. Dollar Eurobonds 


600 -“: 


400 — 



tranches with coupons of 13} 
and 14 per cent through UBS 
(Securities). The coupons were 
below money market rates and 
on Friday the paper was being 
quoted below the selling group 
discount, though it did not fare 
as badly as the 575m, 14} per 
cent issue for W. R. Grace which 
was trading at a 2} per cent 
discount on its 99} per cent 
issue price. 

By Friday, however, the 
clouds were Hfting slightly and 
secondary market prices man- 
aged to put on small gains as 
traders closed positions before 
the weekend. This week will 
in any case be rather quiet as 


many dealers will be away in 
Venice for the annual meeting 
of the Association of Interna- 
tional Bond Dealers. 

This could also restrict the 
flow of new issues. Friday saw 
only one small new fixed rate 
offering: a $65m, seven-year, 15 
per cent issue for Florida Tele- 
phone through Smith Barney. 
A shortage of new issues next 
week would be welcome as it 
would allow investors to carry 
on chipping away at the moun- 
tain of new paper that remains 
unsold. 

Dealers in Germany were 
als o looking for a farther fall 
in dollar interest rates to re- 


kindle enthusiasm for D-mark 
foreign bonds. The Bundes- 
bank's abolition of the special 
Lombard rate two weeks ago 
was discounted by the market 
In advance and there is now a 
sizeable interest gap between 
Germany and the UB. 

German bond markets have 
also been feeling the pressure 
of public sector financing, while 
the d ollar strengthened last 
week to DM £3060 from 
DM 22905 so that D-mark 
foreign bonds shed 3 points 
over the week as a whole. 

In contrast. Swiss franc 
foreign bonds put on another } 
point on average as banks again 
moved to cut short-term deposit 
rates. This is drawing money 
out of the short end of the 
market in favour of longer 
term bonds, dealers said. 

In the Japanese bond market, 
the Y20bn Samurai bond for the 
EEC was priced last week with 
an 8 per cent coupon at 99-85 
to yield 8.027 per cent. Daiwa 
is leading this debut issue for 
the EEC. 

A lack of supply in the 
Samurai sector led prices to rise 
between £ and \ points last 
week, while prices of the bench- 
mark 6.1 per cent 1988 Govern- 
ment bond fell 4 point in a week 
of quiet trading. The Euro-yen 
sector was unchanged. 

PJVL 


Growth continues 
despite oil glut 


LAST YEAR’S attempted coup 
had virtually no impact on 
Bahrain’s international banking 
co mmu nity. Far from inducing 
a slowdown in new business, 
assets have grown at a boom 
rate so far this year. 

M r Abdullah Saif, Governor 
of the Bahrain Monetary 
Agency, says that total assets 
of the 65 operational offshore 
banking units grew by $4.9bn 
in the first quarter to a total 
of $55.6bn. 

Tins is more than double the 
$2.3bn growth of the same 
period of 1981 and compares 
with an average monthly 
growth for all last year of 
51 -lbn. 

Bankers in Bahrain say the 
con tinuing growth is in part 
due to the expanding opera- 
tions of the two local giants — 
Arab Banking Corporation and 
Gulf International Bank. But 
the figures also suggest that 
there is little Teason to suppose 
that the declining oil price will 
impair Bahrain’s strength as a 
financial centre. 

Last year OPEC countries as 
a group were net takers of funds 
from the world banking system, 
and fears have been expressed 
in Bahrain that as this process 
continues offshore banks could 
become starved of new deposits. 

Yet despite its location 


Bahrain has never served as a 
significant repository for official 
surplus funds from the Gulf. It 
has relied much more heavily 
on the private sector liquidity of 
tee region which still seems 
abundan t. 

Also offshore banks in i 
Bahrain have now built up a ■ 
substantial loan portfolio in tee ■ 
region itself. Bahrain has be- 
come vitally important as a lend- ■ 
ing centre as well as a source , 
of funds. 

A large part of this lending 
— possibly around a quarter — 
goes to Saudi Arabia where . 
loan demand in npnnection with | 
tee start-up costs of new pro- 1 
jects has been running at very 
high levels. 

One of tee fears expressed by 
some international bankers _ in I 
Bahrain is that Saudi spending 
on new projects could eventu- 
ally decline if the oil glut con - 1 
tinues. This could indeed mean I 
a contraction of banking busi- 
ness in Bahrain. 

For the time being, however, 
bankers still report a wealth of 
new lending opportunities in 
Saudi Arabia whose spending 
programme is so large that it 
simply cannot be stepped dead 
in its tracks. 

P.M. 


CURRENT INTERNATIONAL BOND ISSUES 


Borrowers 

US. DOLLARS 
American Medical}? 

ccrttt 

Aroof? 

Sears Roebuck? 

Superior Oil? 

Etirofima? 

W. R. Grace ? 

LTCSf? 

Illinois Power 
Mobil Oil? 

Mobil Oil? 

Mobil Oil? 

MIMtt 
Mead IntL 
Florida Tel. 

Ko!bnotgen§ 

D-MARKS 

Iceland? 

Escom? 

Bo water 
Austria? 

Helsinki 

• Not yet priced. * Final 


Amount 


Av. life Coupon 


Lead manager 


Offer yield 

% 


5 1997 IS 9} 100 sea 

» 1996 14 * — 100 CCF, CSFB 

3 1990 B 13} 100 Salomon Bros, CSFB, 

Merrill Lynch . 

9 1994 12 0 21} Dean Witter, Daiwa 

Secs. 

5 1989 7 14 100 CSFB 

[> 1990 8 14} 100 Merrill Lynch 

5 1989 7 14} 99} Merrill Lynch 

) 1992 10 5j® 100 LTCB Inti, CSFB 

» 1989 7 14} * CSFB 

9 1984 2 13} 100 UBS Secs. 

9 1985 3 14 100 UBS Secs. 

9 1986 4 13} 100 UBS Secs. 

9 1989 5} — 100 BA Asia 

9 1989 7 15} * Hambros Bank 

5 • 1989 7 15 * Smith Barney 

9 1997 15 9/9} 100 Merrill Lynch, CSFB. 

SG Warburg 

5 1992 10 9} 100} West LB 

9 1990 8 9$ 100 Dresdner Bank 

} 1989 7 8} 99} BHF Bank 

9 1992 10 8} 100 Deutsche Bank 

9 1992 7} 8} 99} BHF Bank 

t Boatin g rata note. ® Minimum. S Convertible. •“ Placement. 1 With 1 


1X826 

14.000 

14.250 

14870 

5050* 


Borrowers 

SWISS FRANCS 
Taryo Yuden§~ 

Kobe City? 
Belgium**? 

Rente 

Ind. Fund of Finland 


Ok! Bectric**§ 
Lonrho 


GUILDERS 

Ireland**? 

EIB 

LUX FRANCS 
Norddeutsdte LB? 

ECUs 

Hydro-Quebec 


Amount 

m. 


60 

100 

100 

80/100 

200 

40 


Maturity 


Av. life 
years 


Coupon 

% 


Price 

Lead manager 

Offer yield 
% 

103 

CS 

6X50 

100} 

UBS 

6.091 

100 

CS 

7.625 

100 

SBC 

7.750 

100 

UBS 

&500 

* 

Banque Gutzwiller, 



Kurz, Bungener 
SBC 

Banque Keyser Ullman, 
ftredietbank Suisse, 
Nordfinanz-Bank 


400 1989 


40 1989 


EEC? 20bn 1992 

Oslo? T5bn • 1992 

Note: Yields are calculated on AIBD basis. 


10} 

100 

ABN Bank 

10.500 

10 

* 

Amro Bank 

* 

12} 

100 

Banque Den. du Lux 

1X500 

* 

* 

Kredietbank 

1X500 

8 

9985 

Daiwa Secs. 

8.022 

8 

99 JO 

Nikko Secs. ’ 

8X68 


All of these Securities have been soldi This announcement appears as amatterof record only. 


U.S. $150,000,000 

JEtna Life and Casualty 
International Finance N.V. 

Guaranteed Retractable Notes Due 1997 

Payment ofprindp(Uandmterestzmc(nidiH(maMygiummteed by 

JEtna Life and Casualty Company 


U.S. $250,000,000 

J. P. Morgan International Finance N.V. 

Guaranteed Floating Rate Subordinated Notes 

Due 1997 


The Notes are guaranteed on a subordinated basis by 

J. P. Morgan & Co. Incorporated 


MORGAN STANLEY INTERNATIONAL 


ALGEMENE BANK NEDERLAND N.V. 
BANQUE BRUXELLES LAMBERT SA. 


CREDIT SUISSE FIRST BOSTON 
SAMUEL MONTA GU & CO. 
NOMURA INT ER NATIONAL 


S0C1ETE GENERALS DE BANQUE SA. 


BANK OF AMER ICA IN TERNATIONAL 


BANQUE DE PARIS ET DES PAYS-BAS 
DEUTSCHE BANKAETXENGESELLSCHAFT 


MORGAN GRENFELL &CO. 


SALOMON BROTHERS INTERNATIONAL 


SWISS BANK CORPORATION INTERNATIONAL 

Limi t ed 


Morgan Stanley International 


Credit Suisse First Boston Limited 


Deutsche Bank Akttengesellschaft 


Morgan Guaranty Ltd 


Salomon Brothers International 


Merrill Lynch International & Co. 


Swiss Bank Corporation International Union Bank of Switzerland (Securities) 

Limited Limited 


UNION SAUK OFSmTH&jLAM) (SECURITIES) 


S. G. WARBURG & CO. WD. 


May 23,2982- 


AH of these Seaoitiea home been sold* Thu announcement appears as a matter of record tsUy. 


AprZ2t,2982 



Ccmpaniss and Markets 


Financial Times Mond^y.,1^^ 1982 

INTERNATIONAL CAPITAL MAR KE TS AND COMPANIES 


US BONDS 


tedicted rally 
ills to appear 



deficit in first quarter 


$23m loss 
at Playboy 
in third 



BY ROBERT GIBBEN5 IN MONTREAL 


THE WIDELY predicted rally 
failed to materialise on Wall 
Street last week despite another 
drop in the money supply the 
previous Friday and more 
budget bargaining on Capitol 
Hill. By Friday bond prices 
were showing slight losses, 
though short-term interest rates 
were little changed. The bank- 
ruptcy of Bra niff International, 
the major airline, was a stark 
reminder of tile strains in cor- 
porate America though it had 
little market impact. 

Investors were unnerved by 
tome unexpected flickers of life 
in the economy which triggered 
fears of a new upsurge in credit 
demand. Reports for April 
showed a healthy decline in 
inventories and a boost in retail 
sales. Car sales in the first few 
days of this month were also 
surprisingly strong. All this 
defied the conventional view 
that the economy is flat on its 
back and unlikely to get up 
before mid-year. 


U.5. INTEREST RATES (%) 

Week io Week 10 
May 14 May 7 
funds wHy aw. 14.85 15.42 


Fed. funds wHy aw. 14.85 15.42 

1- month Trsas. bills 12.45 12.25 

3-montt t CD J3.S0 73.75 

30-year Tieas. bonds 13.22 13.08 

AAA Util 15.50 15.50 

AA Industrial 15.G0 14.88 

Source: Salomon Erortrers (estimates). 
In ihc vieek to May 5 Ml rose 58C0m 
to S443 3hn. 


The stubborness of the Fed 
funds rate is another worry. 
This key overnight bank rate 
has stuck around 14 to lb per 
cent for several weeks despite 
much talk that a “break” is 
imminent. 

Tlie reason is partly technical. 
The Treasury sopped up enor- 
mous amounts of money during 
iast month’s tax payments and 
has only been able to deposit 
part of it back into the com- 
mercial banking system. The 
rest has been placed at the 
Federal Reserve where it is, so 
to speak, ont of play. 

Once the Treasury starts 
spending agasin. more of this 
money should come back into 
the system and bring down short 
rales. That could In turn give 
ihe bond market a boost. The 
prime rate might even come 
down half a point from 1G$ per 
cent A regional bank in North 
Carolina took that step last 
week. But big city bankers say 
they feel uneasy about cutting 
the prime until they are sure 
they will not hare to reverse 


themselves with embarrassing 
haste. Demand for short-term 
credit also continues strong. 

But in looking for a major 
market rally, time is also becom- 
ing a factor. The popular view 
is that while interest rates could 
decline in the weeks ahead, the 
market will suffer the full 
onslaught of Treasury borrow- 
ing in the latter half of the 
year. So the question is whether 
the rally will be able to make 
much ground before the storm 
bursts. 

This week the market’s eyes 
will be fixed on the Fed which 
is holding one of its periodic 
credit policy meetings to set 
money supply targets. Last 
week's small rise in Ml means 
it is still running above the 
current target of between 2J per 
cent and 5£ per cent growth a 
year, but only by a small 
margin. Wall Street expects the 
Fed to leave Ms basic policy 
unchanged, especially with the 
budget problem still unresolved. 

Ford Motor Credit sold $250m 
of one-year extendable notes. 
Investors have the option of 
cashing the notes in or renew- 
ing them every year for three 
years. The opening yield is 
16.75 per cent; if and when the 
notes are renewed they will 
cany a similar spread over 
one-year Treasuries. The notes 
allow the investor a certain 
flexibility which adds to their 
appeal and shaves a bit off 
Ford's borrowing costs which 
are higher now that its credit 
rating has slipped to B. 

General Motors Acceptance 
Corporation also made the trip 
from Detroit to sell $IO0m of 
original issue discount five-year 
notes. GMAC is still A grade 
and it paid 14.67 per cent for 
its money. But it has already 
warned that it will need to 
borrow heavily this year. 

Other borrowers included 
Allied Stores, Peniaoil, ITT 
Financial, and Republic New 
York. 

This week’s tentative calendar 
looks moderate, including a 
Citicorp $150m, five-year, note 
issue and Getty Oil’s $3Q0m of 
10-year notes. 

The Treasury is due to sell 
S5.5ba of two-year notes on 
Wednesday. Its regular weekly 
auction of bills tonight has also 
been raised from $9.4bn to 
$9.8bn, suggesting that the days 
of the regular $10bn auction 
cannot be far off. 

David LasceUes 


DOME PETROLEUM, the 
Canadian oil company at the 
forefront of the Federal Gov- 
ernment’s plans to “Canadian- 
ise " the nation's energy assets, 
has reported a first quarter loss 
of CS25.7m fUS$21.7m). • 

The 9oss was not entirely un- 
expected in view of changes in 
the company's structure and 
the high cost of servicing 
Dome's debts which total more 
than C$3bn. 

The company attributed the 
loss mainly to financial factors 
following Its C$4bn takeover 
last year of Hudson’s Bay Oil 
and Gas. plus higher petroleum 
production taxes and financing 
costs. 

Dome's first quarter revenues 
were C$752 m and cash flow after 
preferred dividends was 
C$97.7m. 

A year earlier Dome reported 
net profits of CS 54.1m or 24 
cents a share on revenues of 
CS360m. But the results are not 
comparable, mainly because of 
the inclusion of HBOC and 


Finance chief 
for American 
Express Inti. 
Banking 


• AMERICAN EXPRESS 
INTERNATIONAL BANKING 
CORP. New York, has appointed 
Mr Robert T. Buden bender 
executive vice-president and 
chief financial officer. He will 
assume responsibility for the 
control lership function, budget- 
ing and financial analysis, taxa- 
tion, auditing and management 
information systems for the 
wholly owned subsidiary of 
American Express Company. He 
comes to AEfBC from Morgan 
Guaranty Trust Company of New 
York where he has been a vice- 
president and deputy controller 
with full financial responsibility 
for all policies and procedures 
cave ring Morgan's international 
business. 

0 MONTGOMERY WARD AND 
COMPANY Chicago has 
appointed Mr David Snell to the 
newly-created position of vice- 
president of advertising and 
sales promotion, and Mr William 
J. McCarthy to vice-president of 
the eastern region. In his new 
position. Mr Snell assumes the 
responsibilities of Mr McCarthy 


This announcement appears as a matter of record only. 


NEW ISSUE 


mwA 

mm 

mmhl 


US. $350,000,000 


New Zealand 


Floating Rate Notes Due 1987 


Kidder, Peabody International 

limited 


Davie Shipbuilding which Dome 
also acquired alter the first 
quarter last year. 

Dome says that depreciation 
and depletion charges in the 
latest quarter were substantially 
higher because of HBOC. But 
the group suffered from lower 
oil output and a sharp drop in 
margins for natural gas liquids. 


Dome is a major producer of 
gas liquids. 

Dome while not adding to this 
explanation, has made commit- 
ments to reduce its debt by 
year-end to around C$2. 4bn, and 
oil industry reports persist that 
HBOG may sell off ail or part 
of its production assets in Indo- 
nesia. 


quarter 

By Richard Umbert in New York 


BY ROBERT COTTRELL IN HONG KONG 


Weston warns on profits 


BY OUR MONTREAL CORRESPONDENT 


THE GEORGE WESTON food 
and resource group, which con- 
trols the Loblaw retail food 
chains in Canada and the U.S.. 
has a serious problem in its 
east and west coast fishing and 
fish products affiliates, Mr 
Galen Weston, president, said. 

It operates large trawlers and 
fishing processing plants which 
“show little hope of providing 
an adequate return in the fore- 
seeable future on the C$£50m 


invested.” 

More vessels will be sold and 
processing plants shutdown. 
Weston expects to bold its group 
sales this year at about the same 
level as last year’s C$7.4bn, but 
profits will be under pressure 
in the second quarter and pos- 
sibly in the second half unless 
the economy improves. It 
reported net profits down 10 per 
cent to C$12.3m for the first 
quarter of 1982-83 


PLAYBOY ENTERPRISES, 
the U.S. publishing and enter- 
tainment group, has reported 
a loss of $22.6m for the three 
months ended March, com- 
pared with a net profit of 
$2.7m a year earlier. 
Revenues fell from $62m to 
$53m. 

The company said that 
two-thirds of the loss 
stemmed from the write off 
of pro-operating expenses and 
other costs related to the 
development of a hotel- 
casino in Atlantic City, New 
Jersey. 


The latest figures take the 
company’s losses for the first 
nine months of fiscal 2982 to 
$30.3in (against 510.9m 
of profits last year) including 
$3.4m from discontinued 
operations. Revenues fell 
from $180. 9m to $172J>m in 
the period. 


THE DRAMATIC growth of 
Carrian Investments, the Hong 
Kong group which is rapidly 
diversifying from its property 
base, is underscored by figures 
published for the first time in 
its latest annual report 

Total assets stood at 
HK$5.5bn (US$950m) at the 
end of 19&1, against only 
HKSZ.ZSbn a year earlier. 
Shareholders' funds rose in the 
same period to HK$2.45bn from 
HK$866m while deferred liabili- 
ties-— debt’s payable in more 
than one year's time increased 
to HK$2.14bn from HK$37.3m. 

The big impact on Carrian’s 
balance sheets comes from 
shipping. In 1981 the company 
bought Oasis Maritime and 
Imperial Maritime, which were 
in turn merged into Grand 
Marine via a series of deals 
which left Carrian ultimately 
holding 60 per cent of Grand 
Marine. CM currently ha*- a 
1.7m ton fleet comprising 67 
ships, of which 15 are under 
construction. 


The group’s statement of fixed 
assets shows a net book value 
for motor vessels of HK$ 2.1bu . 
at year-end, compared with ' 
HK$ 62m at the end of 1980, > 
while HK$ L56bn of the 
deferred liabilities relate to 
Grand Marine. ; - 

Share capital also expanded / 
markedly during the year, with 
nominal capital ■rising from 
HKS 353.2m to HKS 712.95m. := 
The share premium account r- 
leapt from HKS 106.8m to HKS 
lbn. ' ' . 


Carrian Investment’s 1981 net ■’ 
profits, as previously reported, • ■ 
were HKS626zn, against tiie ) ■ 
HKS461.8m reported for the 
nine months to December, 1980. 

Mr George Tan, in his first t v 
statement as chairman of 
Carrian Investments, says the i • 
group has been transformed l ■ 
from a Hong Kong property ;; 
companv into “an inter- ( 
nationally oriented group with 
a diversified portfolio of invest- 
ments.” , * 


INTERNATIONAL APPOINTMENTS 


In his former position of vice- 
president of retail merchandise. 

• MORGAN GUARANTY TRUST 
COMPANY has appointed Mr K. 
Peter von Ellen, vice-president, 
as vice-president and assistant 
general manager of the bank's 
German offices from June 1, 
responsible for corporate bank- 
ing, funding services, personnel 
and financial analysis. 

9 Mr Graham FL Break well has 
been promoted to vice-president 
and transferred from London to 
the Los Angeles headquarters of 
SECURITY PACIFIC CORP. He 
becomes an officer In the treasury 
department. 

• Mr -Gerald G. Probsl lias been 
elected chairman of SPERRY 
CORP New York. He will con- 
tinue as chief executive officer 
and will assume his additional 
responsibility on Jung I. This 
coincides with the retirement on 
June 1 of Mr J. Paul Lyet, 
Sperry's chairman since 1972. 

9 Mr Donald 31. JBirney and Mr 
Thomas J. Tucker have been 
appointed assistant vice-oresi- 
dents of the AMERICAN 
BUREAU OF SHIPPING. 

O CORBOON AND BLACK 
CORP, New York, an inter- 
national insurance brokerage 
firm. lias elected Mr William P. 
Baccala and Mr Joseph V. 
Ambrose, Jr as senior vice-presi- • 
dents. 

e Mr Robert S. November has 
joined INTERNATIONAL TELE- 


PHONE AND TELEGRAPH 
CORP, New York, as director of 
business development for its 
communications and Information 
services group. He joins ITT 
after 22 years with The New 
York Times Company. 

• Mr Geoffrey A. Thompson has 
been named senior vice-president 
— strategic investments of 
MARINE MIDLAND BANKS, 
INC. He continues as senior vice- 
president of Marine Midland 
Bank, N.4., beading the planning 
and corporate development 
division. 

to Mr Joseph V. Vittoria has re- 
joined the AVIS RENT A CAR 
SYSTEM, INC os executive vice- 
president for sales and market- 
ing. On leaving Avis in 1977 Mr 
Vittoria joined Hertz inter- 
national operations, and later 
became president 

• Mr C. G. N. Ryder has become 
president of JOHN SWIRE AND 
SONS tJAPANj. He was 
formerly deputy chairman of 
The China Navigation Company 
(CNCm. New deputy chairman 
of CNCo is Mr D. A. Gledhill, 
shipping di/setor of the Swire 
Group in Hong Kong. 

• Mr John Gale has been 
appointed senior executive vice- 
president, chief administrative 
officer and director of 
NATIONAL WESTMINSTER 
BANK’S wholly-owned subsidiary 
National Bank of North America, 


in New York. He was area 
director of NatWest’s Romford 
area office. 

• Mr H. Eugene Larson, a vice- 
president, has been appointed 
president of ALLEN AND 
GARCIA CO, Chicago (a Simon 
Engineering company), from 
July 1. He succeeds Mr Paul 
Levin, who is to retire on June 
30. Mr Levin will continue in a 
consultative capacity. 

• RENISON GOLDFIELDS 
CONSOLIDATED, Sydney, has 
appointed Mr W. P. Morphy as 
executive director— marketing. 

• Mr Niels Bo Madsen has 
joined the GULF GROUP. He 
recently resigned as president 
and chief executive of Anglo 
Nordic Shipping and Associated 
Bulk Carriers. 

• Mr Richard M. Clarke has 
been elected a corporate vice- 
president and appointed presi- 
dent of CELANESE specialty 
operations. New York, a new unit 
directing the company's specialty 
chemicals and plastics businesses. 
He has been president and chief 
executive officer of Celanese 
Canada Inc since 1978 where he 
will be replaced by Dr Ernest XL 
Drew. 

• Mr Will M, Storey, executive 
vice-president and thief finan- 
cial officer of BOISE CASCADE 
CORP, has resigned to become 
vice-chairman, chief financial 
officer and a director of FEDER- 


ATED DEPARTMENT STORES 
INC. His responsibilities at BCC 
will be shared by Mr Rex L. 
Dorman, who becomes vice-presi- 
dent of finance, Mr George J. 
Ha rad, . who was elected con- 
troller and Mr Clifford A. 
Morton, who continues as vice- 
president, planning and develop- 
ment. . 

• Mr.' Granville W- Holman, Jr 
has been elected executive vice 
president of KAISER ENGIN- 
EERS INC, Oakland, California. 
Since 1980, he has been Kaiser 
Engineers’ group vice-president, 
Australia /Asia, and managing 
director of its subsidiary, Ray- 
mond Engineers Australia Pty, 
based in Sydney. He has been 
replaced in Australia by Hr 
Herbert A. Thomas, Jr, pre- 
viously Kaiser Engineers' group 
vice president advanced tech- 
nology and transportation. 

O Id DDE. INC., New Jersey, has 
elected Mr RIefaard P. fiamilt a 
senior vice-president and Mr 
Vincent S. DcLorenzo an 
assistant controller of the 
corporation. Mr Barnitt had been 
vice-president and controller of 
Kidde. Mr DeLorenzo was 
director of accounting for Kidde. 

• Hr Peter H. Wiescbenbeig 
has joined the corporate staff of 
COLT INDUSTRIES INC New 
York, as director of risk manage- 
ment. He was director of risk 
management and safely for 


Ray order Inc., a division of ITT. 

• GOULD INC., Chicago, has h-- 
elected Mr Glenn E. Pcnisten to * . 

the board for a three-year term. , ' ' 

He is a, vice-president of Gould ".-..i,-.* - 
and the chairman and chief A'- -' ~ _ 
executive officer of the company's 
newly acquired semiconductor , „ ’ 

subsidiary, American Micro- V tTP^ 
systems, Inc J* 11 

• Mr Tom M. Hamilton has , .... 
joined AMINO EL USA, Inc, * T'-' : 
Houston, as vice president, r ■* - 
domestic exploration. He sue- j'--. * ' 
ceeds Mr T. W. Ehriug, who i- 
moves to the newly-created posi- .' : . 
tion of vice president. Eastern 
region. Mr Hamilton was ■ 
manager, frontier evaluation for 1 
PennzoU Exploration and Pro- 

duct) on Company. . 

• AMERICAN GENERAL CORP : - / 
Houston, has promoted Mr 

Andrew Delaney to vice chair- •' _ 

man of the board. He will con- - — ~~ ~~ 

tinue as the . company's chief - — 

investment officer. 

ft Mr Klaus Wcmmie, hitherto 
finance manager of Joh. Jacobs 
and Company, Bremen, has been 


given responsibility for group 
finances of the Swiss-based " 


parent company JACOBS AG, a 
leading European coffee concern. 
Mr Robert Laporte moves from 
the Belgian subsidiary Les Cafee 
Chat Note to succeed Mr Donald 
K. Stelling as production 
manager of Jacobs AG. while Dr 
Hubert Koehler becomes head 
of group research. 


FT INTERNATIONAL BOND SERVICE 


April, 1952 


U.S, DOLLAR Changa on 

STRAIGHTS Issued Bid Offer day week Yield 

Aetna Life 15 85/37 ... 150 1014 1024 0 -0414.23 

Aina* Ini. Fin. 164 9?. 75 1031, 1044 0 0 15.41 

4r.e* O/S Fin. 14*. 89 75 974 584 0 -01,14.74 

APS Fin Co. 164 89 ... 75 103 s , 10«4 +0*, -0>, 15.23 

Armco O/S fin. 15» a 86 50 f1004 100*, 0 -04 15.08 

ATT 144 89 400 1014 1021, o -O', 13.78 

Bal-er Int. Fin. 0 0 ST. 225 t27*i 28 -0* a -14 14.00 

Ek. Amer. NT SA 12 87 200 92', 92*, 0 +0', 14.16 

Burroujlis Int. 15 s , 88 50 104-6 105*, 0 0 14.36 

Canada* 15 s , 87 ... . 150 102 1024 +04 0 14.77 

C.’rt. Net. Rail M4 SI 100 S94 100', 0 -04 14.55 

Carolina Power 16*, 89 60 104’, 104-, —OH -1 16 JO 

CIBC 16 87 100 103», 1U3>, -O', -OS, 14.83 

Citicorp O/S 15 84/92 100 100 s , 10T4 +0>, 0 14.40 

Citicorp O/S 154 85/97 125 101 1 , 102 +0», -O', 14.62 

CNA 15?- 97 7S 100 s , 701% -0», -0», 75.05 

Con. Illinois 15 s .. 89 ... 100 103 1034 +04 -04 14.91 


Change on 

YEN STRAIGHTS Issued Bid Oiler day woeR Yield 

Asian Dew. Bk. 84 91 15 10C4 101» 4 0 +04 8.C4 

Int. -Amer. Dev. 84 91 15 10241034 0 +04 3-43 

Japan Airlines 74 87... 9 97 s , 934 0 0 8.39 

New Zwland S4 87 ... 15 1014 1024 0 +04 7.97 

World Bank 8 s , 92 ... 20 10041014 0 0 8.25 

Average price changes... On day C On week +04 


EUROBOND TURNOVER 

(nominal* value in $m) 

Euro- 
Cede! dear 
Last week ... 4,28-1.0 11,685.3 


Dak a Fwr. O/S 154 89 GO 1014 1024 0 -04 16.00 
Dupont O'S 144 SS ... 400 1004 101 0 -0414.28 

Dupont O/S Cap. 00 90 300 37 s , 38 s , +04 -04 13.28 

994 99», 0 -1 14.83 


ECSC 1«4 87 


E<B 154 89 150 10141014 0 -0415.07 

FVSporrlinuns U4 89 ... 50 984 98-, 0 -04 14.82 

Gen. Elec. Credit 0 0 92 400 304 314 +04 “04 12.75 

Gon. Elec. Credit 0 n 93 400 27 274 -04 -14 12.85 

Getty Oil Int. 14 89 ... 125 384 994 +04 -0414.23 

GMAC O/S Fm. 16 88 150 1024103 0 -0415.19 

GMAC O/S 154 85/97 100 994 994 0 0 15A3 

Guli Conp-Jj Ltd 144 92 100 99 s , 1004 0 -04 14.70 

Gull 0.1 144 S4 175 984 894 0 -0414.39 


Gulf 0.1 Fin. 0 0 &2 


99 s , 1004 0 -0414.70 
984 994 0 -0414.39 
284 284 -04 -1 13.61 


Gull Sfat'9 OrS T<5 90 60 101 10T»- 0 +0416.69 

In: -Am Dv. EL. 154 87 55 994 1004 -04 - 04 15.02 

Japan Airlines 154 88 60 1014102 -04 -04 14.75 

J.-.pan Dev. Bk. 154 87 50 1034 1034 0 +0» 4 14.34 

Nat West. 1*4 91 ... . 100 1014 1014 +04 -04 14.40 

Hew Brdnewjck 164 89 75 1054 1064 O +04 14.5S 

OKG 15 s , 85/97 50 984 99 0 -0416.13 

Ontano Hv-J. 10 91 (N1 200 10B 1064 tD4 -0414.68 

Pjc. <7.:; a El. 15\ 89 80 1034104 0 -0414.77 

Pac. Cnn & El 154 89 45 1034 1034 0 -0‘, 14.60 

J. C Pcnnpy Gl 0 0 34 350 234 234 0 -0413.06 

Phillip's Prtml 14 89 . . 200 974 974 -04 -04 14.59 

Quobnc Piov. 154 89.. 150 1004 1074 0 -0414.93 

R J. Rynidc. O/S PCi 92 400 +284 284 0 -0413.72 

Saol-otchnwan 16 89 . 125 10441044 - 04 -0414.90 

Spj.n 154 67 ..... TOO 994 994 +04 -O', 15.83 


OTHER STRAIGHTS 
Con. Pac: S. 164 69 CS 
Crd. Fancier 174 89 CS 
Hudson Bay 17 S3 CS... 

Montreal 17 89 CS 

Queb. Hydro 164 89 CS 
Quebec Prow. 17 88 CS 
Simpsons 16V 89 CS ... 
U. Bk. Nwy. 94 90 EUA 
Alqemene Bk. 104 86 FI 
Amfas Group 124 86 FI 
Amro Bank 12 86 FI ... 
Phil. Lumps 104 87 FI 

Pierson 104 86 FI 

Rabobank 12 86 FI 

n*H 14 80 FFr 

Sohroy et C. 144 36 FFr 

Aconn 74 85 C 

Bonoficial 144 90 C ID) 

BMP 13»- 91 £ 

r«=CA 134 B8 £ 

Fin. Ex. Cred. 134 86 E 
Gan, Elec. Co. 124 89 £ 
Hiram Walkor 144 86 C 
Privatbankcn 144 88 £ 

Quoboc 154 87 C 

Read (Ndl NV 164 89 £ 
Royal Trustee 14 86 £ 
SDR Franco 154 92 C . 
Swoil. Ex. Cr. 134 3G C 
Eurcfima 104 87 Lu/.Fr 
EIB 9V 63 lu*Fr 


Change on 

Issued Bid Offer day week Yield 
50 +S941S0 0 +04 16 42 


Previous week 5,911.4 8,387.6 
U.S. $ bonds 


39 

tioo. 

100*2 

0 

+1 

17.05 

40 

tlOO 

1004 

0 

-04 

16.92 

50 

+1 02 

102*2 

0 

0 

16.33 

50 

193 s , 

100*4 

0 

0 

16.46 

50 

11024 

103 

0 

+ 0*, 

16.19 

40 

197*, 

974 

0 

+04 

17.3a 

18 

894 

90*2 

0 

-04 

11.52 

60 

1024 

1024 

+04 

+04 

9^5 

40 

1064 

1064 

+0*, 

+04 

10J3 

« 

1064 

106 s , 

0 

0 

10.04 

100 

10*4 

101 s , 

+0*4 

+0*2 

9.S1 

50 

1004 

100-', 

0 

-04 10.02 

SO 

106 1 * 

107 

-n»- 

-*-04 

9.P0 

4C0 

37*, 

<m. 

xm. 

-*-1 


200 

' K!>. 

93* 

11 

j.m. 

17.46 

20 

«l. 

'IT 

— A- 

■*•?»- 

ir f* 

20 


WIT, 

n 

+ 1*- 

v « 

15 

in 

41 " 

n 

^•tr. 

T- PP 

23 

OBJ. 

Oft 

-7 s - 

api. 

•r r» 

15 

95 >. 

(K*. 

n 

APT, 

*6 11 

60 

92*, 

■94 

-C*2 

j.";. 

--7 

25 

974 

**R4 

P 

."-OT. 

in 

12 

944 

e*i*. 

+ 0»i 

-*-04 

IB PS 

35 

1014 

-eju. 

-1*4 

+1 

H.75 

2S 

1024 

ICS’, 

0 

+ 1*3 

16 E5 

12 

374 

9R4 

+04 

+0»2 

14.62 

30 

994 

1004 

0 

+14 

15 48 

29 

.97 s , 

934 

0 

+04 

14.37 

500 

96 

97 

— 0*2 

-04 

11.76 

600 

944 

854 

+ 0*3 

+C4 

11.04 


Other bonds 
Last week ... 
Previons week 


4 No information available- 
previous day's price. 

t Only one market maker 
supplied a price. 




STRAIGHT BONDS: The yield 
is the yield to redemption of 
the mid-price; the amount issued 
is in millions of currency units 
except for Yen bonds where 
it is in billions. Change on 
week = Change over price a week 
earlier. 




FLOATING RATE 


Saol'otcnrwan 16 89 

Spjiri ,54 hi 

S:,-tsi , OTc:.m 164 87 ... 
6»edfi 144 PS . . . 


SO 10041004 0 -0415.51 


964 97 0 +0415.25 


S« E*. Cr. 164 75 1024 1034 -04 -04 14.B4 

Rived. Ev. Cred 15'. 89 inO 100 1004 -04 -04 15.15 
Swnl. E\ Crud. HI) 94 200 214 224 0 0 13.61 

Trjnmc.in.7ti.-i IS SS .. 100 101 U 7024 -04 -04 15.47 

Wc’1% F^rno I F 10 37 75 1014 101 s , +0>, -0», 14A7 

«VMC F.n. 154 68 50 984 994 0 -0415.68 

World Bonk 1&», 88 ... 2SO 1024 1024 +04 +04 14.57 

Avatage puce changes... On day 0 on wock —O', 


NOTES Sprvai 

Alliocl Irish 54 92 .. 04 

B.ink Wonlxul 54 91 04 
B>i. ol Tokyo 54 97 (Pt 04 
BV. Nova Scotia 54 S3 04 

RFCE 54 04 

RFCE 54 87 04 

Caiase Not. Tela. 54 90 04 
rCCE 54 2D02 04 


Spread Bid Offer C.dta C.cpn 


984 99 15/10 15 69 
99* s 994 29/10 !S : , 
33V 994 KfS 134 
994 294 29/10 IF, 
»4 7*3/10 IS 

gw. IPO 27/1 164 
93 s , 994 ?1 /.! 154 


FLOATING RATE NOTES: 
Denominated in dollars unless 
otherwise indicated. Coupon 
shown is minimum. C.dte-Date 
■next coupon becomes effective. 
Spread — Margin above six-month 
offered rate (t three- month ; 
, above mean rate} for U.S. 
dollars. Cxpn = The current 
coupon. C.yld = The current 
yield. 


Credit Nat. 54 94 ... 


DEUTSCHE MARK 
STRAIGHTS 


Asian Dsv Bank 94 92 150 


Auwrolui 94 91 
Australia 94 91 


Comp. T of. Eio. J04 S2 100 


Denmark 70 83 

Denmark iQi, 92 

EDF 94 92 

EEC 104 33 

EEC 94 94 

EIB 94 38 

Ireland 1C4 S6 

Mon ico II sa . . 


Nacnl. Finonclara HOT 150 


Amro International 

XJuuUed 


Arab Banking Corporation (ABC) 


Banaue Rationale de Paris 


Eanque de Pads et des Pays-Bas 


Citicorp International Group 


il.ii. VAv.;. 94 E 
Nvw 7cj|i,id 94 69 . . 

OKS 94 3G 

DuvIfL ir:, EC .. .... 
n:ir>wr Hvdro 104 si .. 

Hr.nti? 10 M 

T.>u..:f»,iujc»; V |», 9 T , 94 
Vrr.cr-jrl.i 11«- 91 
World B'nl 34 E9 .. .. 
World Sunk 10 91 . . .. 


Commerzbank 

AUJcaccacUaclui (c 


Average price chongos... On day 


Change on 

Offer day week Yield 
1004 -04 -04 9.27 
1M4 -04 -04 8.67 
105 +04 -04 8.59 

1014 -04 -04 jom 

102 s , -04 -14 9.38 
1034 -04 -1 9.63 

1024 0 -04 9.52 
104 s , —04 -04 9.45 
1034 -O'# -04 3.27 
1034 0 -04 9.15 

1024 0 -04 8.47 
1024 +04 -14 10.56 
1004 “04 -04 10 M 
1054 0 -04 9.00 
1054 +04 -04 8.84 
IITh, 0 -04 8.13 
1054 -04 -0 s , 9.27 
105*, -04 -14 S.ai 
1004 -04 -04 10.00 

103', -04 -04 g.& 
1014 -04 -0 s , 11.34 

1034 +0‘, 0 8.91 

1054 0 -04 9.10 
-04 on week -04 


GenlinancB 54 32 


'Tr.R ln D nn 5»- R9 .... 


NnrH.c Int. Fin. 54 91 


Prendard Chen. 54 91 04 

Sumitomo Fin. 54 SS . . 04 
Sweden 54 59 .. 04 

Toronto Domin'n 92 04 


CONVERTIBLE 

BONDS 


. 04 

934 

9*4 1VB 

la 82 

04 

99 

99414/10 16 

04 

£W4 

9*4 24/9 

15.44 

0*. 

994 

sa‘, 1/10 is 

t04 

98*; 

9° S/6 

14.69 

: 04* W*. 

99*. 2 <WR 

15 AS 

O', 


384 e/e 

13.56 

04 

904 ippv. to m 

IB. 

04 

984 

Wv 12/11 14*2 

504 

«n 

“9* ; 59/4 

1-.1? 

04 

9T- 

97’; ’Bro 

19 ?1 

604 


091. -JJ/R 

144 

604 

“"4 

r”.. 15.'- 

n ««* 

04 

J»*. 

nqr, 7^1) 

04 

<M*i. 

99*. w f 

-BOB 

0*. 

pm. 

»"*. 6'31 

■*■?!, 

04 

qp). 

m. 7.n 

13 

0*2 

98 ‘ 

99V, r»/B 

144 

0*. 

984 

99J.1 -nn 

1F4 

04 

» 

not, pa/R 

T»V 

04 

not, 

99«, T/9 

15.31 

04 

904 

**94 18/5 

13.31 

04 

93h 1« 9/8 

IB 

04 

OT4 

9°\ 2 S/f? 

16.31 

0*. 

924 

094 11/8 

164 

3M... 

On day 0 On me& 0 

Cnv. 

Cnv. 


Chg. 

dais pries 

Bid Offer day 


SWISS FRANC 
STRAIGHTS 


County Bank 

T.lmll,6 


Credit Suisse First Boston 

Xlmiled 


Deutsche Bank 

AtOicPEMcU bcUaft 


Triuiipqrt 74 92 

Auc.«lu 74 92 

■'in: mIic Q. 2a 


Issued Bid Offer 


C'.c tJ.'i rEneigie 7 9Z 100 


CFE-Mc>ica E‘i 83 ... . 
Cc-nn. Denmark 8', 92 


Crown iillrbch, 64 92 1<3> 


Fuji Intematioiial Finance 

limited 


IBJ International 

Xlmltcd 


Orion Royal Bank 

Xlmltcd 


Swiss Bank Con>oration Intematioiial Union Bank of Switzerland (Securities) S. G. Warburg & Co, Ltd. 

» t. "J 3 I.imil Ail 


Xluuted 


Dmim.irk 74 91 

EiB 74 92 

EI 01 . do France 7 02 .. 

ENEL a 9: 

: F-r-.t Cur Fin. 34 92... 

kantmunlnno 74 92 

W in 1 1 oh > 7 93 
Mitsui OSX G», "as ...... 

N.it>n».i[ Piyr. Co. 8 92 


N.PPOn T. .ind T. 6 s , 92 ICO 


nr.3 v, 92 too 

o-f. Hona^traft 7 92 .. 100 
Oat. Posts ear 74 92 ... 100 
rfc'Sin Moiri". 64 92 ... 100 

Ovrfc-x 74 92 1O0 

] Scki3'»i Pre 54 92 WW 70 
Sot Lux. rte Cm. 84 92 80 

T-rjnccjnadn Pipe. 7 9A 100 
VOMrUrcm Kr.il: C\ 32 50 


104 1044 
994 99’, 
1044 1044 

102 102*4 
994 100 

100 1064 

103 1034 
1024 1034 
1024 1024 
1024 103 
1014 1014 
1044 1064 
102 1024 
106 106t! 
1014 1014 
103-4 1034 
1034 104 
1044 104 s , 
103 1034 
1034 104 
103 1034 
1054 108*, 
1064 1084 
1 054 105* f 
1034 1034 
103-4 1034 




Avcrago price changes... On day +04 


Change on 
day week Yield 
+04 +04 6.90 
+04 +04 7.86 
0 +04 5.99 
+04 +T 6.70 
+14 +04 8.27 
+04 0 7.47 

+04 +04 8.31 
+04 +14 6.81 
-04 0 6J56 

+04 +04 a^a 

+04 +04 7.77 
+04 +04 7.51 
+04 +14 8.95 
+01, -04 6.13 
+04 +14 6J6 
-04 0 7,44 

+04 +04 6.08 
0 0 7.06 

-0*, -04 8.6S 
+04 +04 6.94 
—04 -04 6.19 
-04 +14 6.52 
+04 +1 4.88 

+04 -04 7.21 
+04 -04 654 
+04 +04 626 
on wnk +04 


uuraua date price Bid Offer day Prom 

Ajinomoto 64 8fi 7/Sl 931 33ij 92 -04 S^ffl 

Bgw Valley Inv. 8 95 4/81 23.12 97 93 +04 48.53 

Bndnostono Tiro 54 90 3/SS 470 SO*. 52 —74 —1.68 

Canon 64 95 1/81 339 10641034 -14 9.00 

Daiwa Sees. S* f 06 1Z/B1 513.3 fW 68-1 -2^0 

Fiiiusu Fanuc 44 K 10/31 £641 S S, ST- +14 8.33 

Fitrufcaw.i Eloc. 54 36... 7/81 MO i00 ‘ 1014+1 -5.18 

Hanson O/S Fb. 94 56 8/SI j.36 tntt 90 0 -BJB8 

Hitachi Cable 54 96 2/82 515 86*, SB +2 2.86 

Hftnchi Croc. Cpn. 5 9S 7/81 1812 854 374 +04 0.74 

Honda Motor 54 97 2/32 &J1 CO .914 -14 -7-17 

Inchcapo 8 95 2/BI 4.55 f59 61 -1 HSLfft 

Kawasaki 54 So 9/81 229 724 74 -0 s * 2.^ 

Merit i G 95 7/BI 8484 10F4TO 0 5 02 

Minolta Camara 5 96. ..10/81 826.4 654 67 -O 1 , 9.62 

Minorco 9*, 97 5/82 g.iG t8« 874 0 12.W 

96 - 7 /®1 2168 . 674 W+SPi STJffi 

NKk 64 96 7/El 183 W4 *S 7» 

Nippon Cbom-C 5 01 ..10/81 919 68 70 0 5J9 

Nippon Elactnc 54 37... Z/B2 046 9=*, 1CT4 -04 8^0 

Orion t Finonco 6*, 07 .. 3/83 1205 S5’ 9 <pr, -04 1.77 

Sanyn Elncir.c 5 90 10/FI £52 74:, 7fi '-C4 '3J9 

iumilnmo Eloc. 5*, 07... 3/82 F77.3 914 82 s , -14—1.39 

Sumitomo Met. 54 95 .10/01235.1 704 724 -04 18^2 

Swiss Bk. Cpn. 64 90... 9/CT 191 774 794 0 Z*-» 

KoniBhiroku 6 90 DM ... 2/82 5ES 1064 107 0 3.17 

Mitsubishi H. 6 89 DM 2/82 263 944 954 0 12.86 


15 The Financial Tunes Ltd.. 1532. Reproduct, bo. Ip whole ■ 
nr m DuM in any !orm noi cornutroj Without writtat 
consent. Date supplied by QATASTREAM Interna tonal. 


C.ONVERTTBLE BONDS: De- 
nominated in dollars unless 
otherwise indicated. Chp. day = 
Change on day. Cnv. date = First 
date for conversion into shares. 
Cnv. price = Nominal amount of 
bond per share expressed in 
currency of share at conversion 
rate fixed at issue. Prem=Fer- 
centage premium of the current 
effective price of acquiring 
shares via the bond over the 
most recent price of the shares. 

The list shows the 200 latest 
international bonds for which 
an adequate secondary market 
exists. . The prices over the past 
week were supplied by: Krediet- 
baufe 3W; Credit Commercial de 
France; Credit Lyonnais; Com- 
iui«a:bank AG; Deutsche Bank 
AG; Wcsideulscbe Lao des bank 
Girozentralc; Baoque Generate 
du Luxembourg SA; Bonque 
Internationale Luxembourg; 
Kredietbank. Luxembourg: 
Aigemene Bank Nederland NV; 
Pierson. Heidring and Pierson: 
Credit Suisse/Swiss Credit Bank; 
Union Bank of Switzerland; 
Akroyd and Smithers; Bank 
nf Tokyo International; Bankers 
Trust Imasaational; Credit .Com- 
mercial de France (Securities) 
London; Citicorp International 
Bask: Daiwa Europe NV: BeltfC 
Secnrities (UK); EBC;. First 
Chicago; Goldman Sadis Inter- . 
national Corporation; Harabns 
Bank; IBJ International; Kidder 
Peabody International; Mem" 
Lynch; Morgan Stanley Inter- 
national; Nlkko Securities Com- 
pany ( Europe 1; Orion Royal 
Bank; Samuel Montagu and Co.; 
Scandinavian Bank; SocUU 
Generate Strauss Turnip: 
Sumitomo Finance InternatfcgpU 
S. C». Warburg and Cor.; flFtoo 
Gundy. •• •'. 


W; 


Ki 





i.. 




N 

&t$ 

1 


ies Monday May 17 1982 

WEEK’S FINANCIAL DIARY 

The following is a record of the principal business and financial engagements daring the week. 
The board meetings are mainly for the purpose of considering dividends and official indications 
axe not. always available whether dividends concerned are Interims or finals. The sub-divisions 
shown below are based mainly on last year’s timetable. 


19 


COMPANY MEETHNG*-^- 
Donny (Henry). Bxttlebrfdsu Haute, 
Tooiey Stm, sE, 12.00 
Flther games). LUdoome Hotel, Abbey 
Road, BarrBw-inrFttnicn, 12.00 

Howaitb, Crest Hotel, Burnlcr. 

BOARD MEETINGS — 

FhMK 

Btehamvatq Tst 
Bui Bln (A. PJ 
Fortnum and Macao 
Land Sacs In Tst 
SeUneaart 
Weeks Asoa 
Whitbread 

■ntarfms: 

. Aust and NZ Bks 
BOC 

Brown (Matthew) 

PAYMENTS— 

Aberdeen 3pcHd 196S-6S Hal* 

American Tit 135p _ __ __ _ 

Banco Nadonat Do Mexico SA FttflRteCap 
hits 1987 572.67 

British Emplro'srcx and Gen Ttt 0.20 
But lira Irish and Continental Holidays 
5WCPI irSi-9ZS P 
Comm) Union Assurance 6.95 
Condor Intnl 2J5p 
Courtney Pope 1-2p 
Estates and Gen lews 1.1 In 


Future Hid as 1.S94p 

tfob W ‘ R> ‘ 


. |r£0.3p 

Clelnwort Benson Finance GHFttyRtNta 
1991 S207.81 

London and Manchester 1 -98p 
Lucas indf 2 .GP 

Memec (Memory and Elec Components) 2p 

Metal Closures 3-5o 

Mills and Allen Intnl Bn 

Ransomes Sims and Jeflertss Bp 

Shares Ware 2. 069 Ip 

Sllkolene Lubricants 4.95 p 

Sperry Cpn 4Bct# 

TR Ind and Gen Tst Dape 


Treasury 9pr 1904 4>ipe 
Warner CamrounlCBtlons 


25cts 


TO MORROW 
COMPANY MEETINGS — . 

Anchor Chem, Piccadilly Hotel. M en ches- 

-B? r "of 1 s^tond. The Mound. Edtohurph. 
12.15 

British Aerospace, The Royal Aeronautical 
Society. 4. Hamilton Place. W. 12.00 
Dewhum Dent Heaton Mills. Heaton Park 
Road. Manchester. 12-00 
Gordon (Luis). Caxton Hall. Caxton Street 

Huntiey 'and Palmer. Grosvenor House 
Hotel. Park Lane. W. 12.15 
Klfenwort Benson Lonsdale, 20. Fenchurch 
Street. EC 11.4S 

Madarlane, Tba Merchants Howe, 7. West 
George Street Glasgow. 12.00 
Metzlrax. Plough and Harrow Hotel, Hag- 
Icy Road. Edob astern. Birmingham. 11.45 
. _|OARD MEETINGS— 
finals! 

Alpine Hides 
Anglo American Coal 
British Borneo Pet Synd 
□□port 

Heath (C E.) 

Hinton (Amos) 

. London and Lennox Inv Tst 
R Line I man (Walter) 

Warrington (Thomas) 

Interims: 

French (Thomas) 

Nrthm American Tst 
Nrthm ind improvement* Tst 
Yorks and Lancs Inv Tst 

DIVIDEND & INTEREST PAYMENTS — 
Agricultural Mortgage Con VarBds 


(12-11-92) £7.7625 

Banco Pinto and Softs Mayor HtgRtNts 
'IMS 6J«pc _ ' 

Charter bouse Pat OJp 

Ca-opcrauve Bk FtnRcCapNts IB 86 567.88 
Glen Abbey lr£2J5p 

Leumf'\«d Ma iM > NV GtdFttgRtNts 1985 

MWbSSd ^8* 'ntolfrsCapNl* 1952 6»snc 
Qsterrelc Macho Kontrali-bank AG GldFIta 
RtNtt 1986 5536.23 

Standard ‘Chartered Fin BV GtdFttgRtNts 
1991 5669.32 

WEDNESDAY MAY 19 
COMPANY MEETINGS — 

BSR. Savoy Hotel. The Strand. WC. 11.00 
BTR. Barbican Centre. Barbican. EC, 12.00 
bridon. ChBTSerea Accountants HalL Moor- 
gate Place, EC, 12.00 
BhihJ, Whitbread Brewery, Nr Barb Kan 
Centre. EC. n.oo 

Capo Inda. Hyde Park Hotel, Knightsbrldge. 
SW. 12.00 

ChrtstieB intnl. 8. King Stret st James's, 
51V. 3-00 

Equity and Law Life Assurance, 20. Lin- 
colns Inn Fields, WC 12.15 
Expanded Metal. Iratttnta of Directors. 

116. Pall MaJL SW. 12.00 
Flrmln and Sons. Globe Works. New Town 
Row. Birmingham. 12.15 
Glbt® and Dandy. Commerce House, 
Stuart Street Luton. 11.30 
Jones and Shipman. Narborsugh Road 
.South. Leicester, 2.15 
Lano (Percy). The Excelsior Hotel. B|r- 
mtirabam Airport. 12.00 

s te 2.fs ort ' "• 
jssss. a s r fe c ^ n c aBo i h, 2. l s oom5 ' Grejt 

? hl M‘y. Tr -*, d « House. Glassford 
Street Glasgow. 1 2.00 
R 2“T i ’ -, , ™? ork Brassmlll Lane, 

ElBth. 3.DO 

Sheri Transport and Tido. shell Centre. 
Slomh Est*. Savoy Hotel. Tho Strand. WC, 


5 pV° 


Splra* 5 Sareo. Queens Hotel. Cheltenham. 

U iicf''l I 1 Oo" JMC K Mary A * e * 

U-S- Deb Cpn. Austral Hons*. Basing ha 1 1 
Avenue. EC. 12.00 
BOARD MEETINGS — 

Advance Secs 
■ Ambrose Inv Tst 
Chamberlin and Hill 

ILp8£ H £ w o, aBd Exp,ra 

Feedback 

Loudon Atlantic (ov Tst 
London and Northern 
London Tst 
Whitbread Invs 
Interims: 

Comma Bros 
Dublller 
Irish Distillers 
Moran Tea 
Ppntland Inv Tst 
Red (earn Noll Glass 
Redman H re nan Intnl 

DIVIDEND & INTEREST PAYMENTS — 
APV Hkms 6 . Bp 
A nglo-AKIcan Fin 1.1 25p 
Cement- Roadstone lr£3-56p 
Drayton Com ml Inv 3p 
Flrmln and Sons 3d 
Gibbs and Dandy 1.4p 
Mactarlane Grp (Clansman) 2JS» 

Merrill Lvnch 32ctx 
Newman-Tonks 1 . 6 E 0 _ . 

Sandvik Afctlebolag B SKr ID 


Trewurv - iqjajc 1999 stroc. Do 5pc 1BBS 
1>spc. Do ape 1986 1 i-pc 
Waring and Gil low 1JSp 

THURSDAY MAY 2D 
COMPANY MEETINGS— 

AC Cars. Sumner Road, Thames Ditto*. 
Surrey. 4.00 

Aurora.. Cutlers Hall. Sheffield, 12 JO 
BICC. Methven Room, Centre Point IDS. 

New Oxford Street W, 12 .OO 
Baird . (William). Central Hotel, Gordon 
Street Glasgow, 12.00 

w sa i iuas‘&rti3r m HotcL uw - 
Mantlefvll,c Bftad - 

B » u Adi5£ i5. c oo Norta,k Hoto ’' HaJ ' 

C adbu ry Schweppes Enron* HotcL Duke 
Street Grosvenor Sauare, W. 12.00 
Deb^Grp. Waldorf Hotel. Aldwvch. WC. 

Grwbank Ind. Sawn ina Motor HotcL 
vow Tree Drive, Blackburn. Lancashire. 

Harrison Cowley, 32. Queen Square, Bris- 
tol, 12.00 

H i l i.i c, Si! c ^^LP r £? w - winchester House. 

IOO. Old Brood Street EC. 11.00. 
JeavoM Eng. MldUnd HotoL New Street. 
Birmingham, 1 2 . 0 a 

Jerome (S.;. Pest House. Bramhopc, 12.30 
Johnson Grp Cleaners, The Barber- 
Skbhmis HalL Monkwdl Sauare, EC, 

Morrljon IWJ. HUmore House. Thornton 
Road. Bradford. W. Yorks. 11.00 
New London Props. Britannia Hotel. Grm- 
venor Square. W. 10.30 
Pgtotoj Howxrd Hotel. Temple Plate, The 

Reck ttt ' and' Caiman. Connaught Rooms. 

IS. Great Queen Street WC. 11 . 00 
Sharpe and FKher Plitvillo Pump Room. 

Evesham Road. Cheltenham. 12.00 
Spear and Jaekaon. Chartered Accountants 
Hall. Moorgacc Place, EC. 11.00 
BOARD MEETINGS — 

Finals: 

Fine Art Devs 
Hambros Inv Tst 
Scott and Robertson 
TR Ind and Gen Tst 
TR Nat Res Inv Tst 
Thorpac 
V caper 

Interims: 

Bro ethane 
Concentric 
Construction Whigs 
Herman Smith 
PMsurama 

DIVIDEND & INTEREST PAYMENTS— 
BBL InM NV FltgRlHtt 19B6 5339.37 
BSR Q.iip 

Banco D& La Province De Bueaat Aires 
FttgfttNtS 1980 5339.37 
Beautonl 1.4 p 

Birmingham Drop-Lock 1986-93 £7.6250 
Brldon 2Jp 

r-it»rofflar Tractor 67 Arts 

Exchequer I2pc 1998 (Irish List) 6pc 

Jacob* (John I.) 1.6p 

Jones and Shipman 1.05p 

Uovdstrust Gilt Fund PtgPf Sip 

Lvon and Lyon A.Sd 

Municipal Props 8.2Sp 

Pressac o.35p 

Rolen S.25P 

SeaCo 7. Sets 

Security pacific BOctt 

Salnx-$i*rcQ -3 d 

Woodlngton U- Hi Drogheda (1B3G) 
lr£3Ap. Do 7l;ticP4 5. 25 DC 
FRIDAY MAY 21 
COMPANY MEETINGS — 

Alcan Aluminium (UK), Alcan Hook, 30, 


Berkeley Square. W, 9.30 
Bodyeote Intnl. The St James’s Club. 7. 
Charlotte Street Manchester. 12.30 
Cooker McConnell. London Chamber of 

Street P *EC iS'oo lBdus,TV ' °9> Swnon 

Bowater, Hotei Inter-Continental. One 
Hamilton Place. W. 11.30 
CJlflqrda Dairies, The Balcony Restaurant 
Grandstand. Ascot. Berks. 11 . 30 
F 1200 ‘J 0 *" 9, Aaclph1 Motel * Liverpool. 
Gen' Investor* and Trustees. 1. Laurence 
Poiitnev HJIL EC IZoP 
Gtoun, Norfolk Gardens Hotel. Bradford. 

Jamesons Chocolates, Willoughby Lane. 
Tottenham, N. ajo 

Keep inv Tst 4. Water Street Liverpool, 
3 2.00 

Lee Refrigeration. Shtlnpey Works. Boe- 
nor Regis, 11-30 

IHanboroum Property. Howard Hotel. 
Temple Place. WC. 11JO 
Menefcs (John). The Merchants HalL 22. 
Hanover Street Edinburgh. 12.15 
Reed Executive. Castle Hotel, High Street 
Windsor. Berkshire. 2.00 
Standard Telephones and Cables, The 
Chartered Insurance Institute. 20. 
AkJermanbury. EC. 12.D0 
Trloxldr. ID. Stratton Street W. 12.30 
Utd Ceramic. Lyttleton Arms Hotel. 
Hadley. Nr Stourbridge, W Midlands. 

Wilton (Connolly). Saxon Inn. Northamp- 

“boaRO MEETINGS — 

Finals: 

Bentaoe 

SrKkh Syphon Inds 
Brown and Jackson 
Debentures 
Hartwells 

Interims! 

Fulcrum Inv Tst 
MAM 

DIVIDEND & INTEREST PAYMENTS — 
Agricultural Mortgage SpcDb 1979-B5 

JhgC 

Armstrong Eauloc O.SSp 
Arncllfle 1 J>4p 
BTR d.SB 
Bifurcated 
BrM 
Brttl 


d Eng 0.35D 
rt-Guncfry 0.99P 
Mohair JSpmners a4)4p 


Chambers and Fargus 05n 
CIIIFords Dairies 3 Sp 
Combined Intnl Cpn dScta 
Dowdlno and Mini 0.78P _ 

Home counties Newspapers 3.25p 
Hunt and Moscroo OJp 
Ibstock Johnson 30 
Jamesons Chocolates 3.6p 
Jeavons Eng 1.125o 
Keep Inv Tst o.24p 
Lee RefrfwraOcrn 5-25p 
LASMO Eo 

London and Strathclyde Tst 0.8p 
Marlborough Prop 0.4p 
Merchants Tst 2.4p 

Murnfy* ClvdMdale Inv Tst O.Sp 
Park Place Inv 1.7IP 

RoySV 1 Bk' 3 of D Canada CSS Sets 
Raval Insurance 15 So 
Treasury 13'>ne 2003-05 6><pc 
Walker miornas) 0.’675 d 
Y orkshire Ch»mlrals 0.3o 

SATURDAY MAY 22 
DIVIDEND & INTEREST PAYMENTS— 
Detnrou Cpn 2 -Sd 

Extheauor T4pe 1984 (Irish Llstl 7 PC. Do 
13>:pc 1983 GliPC. Do 12UOC 1985 GW 
Treasury 9 pc 1994 4'jpc. Do 3 pc 19BE 

:PC SUNDAY MAY 23 

Treasury ISkpe 1993 67epc 


This week’s business in Commons and Lords 


TODAY 

Commons: Private members’ 
motions until 7.00 pm; Local 
Government and Planning 
(Scotland) Bill, remaining 
stages. 

Lords: Local Government 

Miscellaneous Provisions) Bill, 
report stage. Select Commit- 
tees: Foreign Affairs — Subjects: 
Falkland Islands and then 
Caribbean and Central America: 


British approach to security, 
stability and development 
Witnesses: Mr Cranley Onslow, 
MP, Minister of State for 
Foreign and Commonwealth 
Affairs. and departmental 
officials (Room 15, 4.S0 pm). 
Select Committee: Public 
Accounts — Subject: Export 
Credit Guarantees Department 
accounts. Witness: Mr K Taylor, 


This advertisement complies with the requirements of the 
Causal of The Stock Exchange. 


TELEFONOS DE 


MEXICO, S.A. 


(Organised under the laws of the United Mexican States) 
Six Month Notes Issued in Scries 
under a 

UJ5. 875,000.000 
Note Purchase Facility 
Issue Price 100 PerCent. 

The following have agreed to subscribe or procure 
subscribers for the Notes as .provided In the Note 
Purchase Facility Agreement: _ . . . . . .^ 

IntenudoBi] Mextett Bmk linitci gawd Mintage &C(L United 

- ‘ -INTERMEX- 

B*nC3 dd Gottanlo Bmcnde Bilbao SA. 

71m Bank o( New Yoffc DaMcM Kingn I gta wat fa pri Limited 

European Arab But limited laUxaex latenatlaaal Baal Limited 

Intemdonal Coaunetrial BnA PLC Orioq Royal BokLhmled 

SwbAi HinfclftwnlfR SA. 

TTic Notes, in the denominations of U.S. 510,000 and U.S. 
5500,000 each, will be issued in series of between US. 
$20,000,000 and US. $40,000,000. The Notes of each series 
will mature six months after their dale of issue. The Notes 
have been admitted to the Official List of The Stock 
Exchange of the United Kingdom and the Republic of 
Ireland, subject only to the issue of the Notes. 

Particulars of the Notes and of Telefonos de M£xico.SA. are 
available in the statistical sendees of Extel Statistical 
Services and may be obtained during normal business hours 
on any week day (Saturdays excepted) up to and including 
1st June, f9S2from: 

Cazewne & Ca, 12 Tokenbouse Yard, Loudon EOR 7AN 


CB, Secretary, ECGD (Room 16, 
4.45 pm). 

TOMORROW 

Commons: Employment Bill, 
remaining stages. 

Lords: Oil and Gas (Enterprise) 
Bill, Committee. • 

Select Committees: Environ- 
ment — Subject: Inquiry into 
methods of financing local gov- 
ernment in the context of the 
Government’s green paper 
(CMND 8449). Witnesses: 
Treasury, Home Office, and 
Environment Department 
officials, and Inland Revenue 
officials (Room 16. 4.00 pm). 
Committee on a Private Bill: 
British Transport Docks Bill 
(Room 5, 11.00 am). 

WEDNESDAY 

Commons: Employment Bill, 
Third Reading until about 
7.00 pm, followed by Criminal 
Justice Bill, Third Reading and 
remaining stages of Industry 
Bill. 

Lords: Debate on the report of 
the Commission on Energy and 
the. Environment entitled “Coal 
and the Environment” Debate 
on relations between Britain and' 
China. 

Select Committees: Education, 
Science and Arts— Subject: 
Department of Education and 
Science expenditure plans 1931- 
82 and subsequent years. 

Witness: Rt-Hon. Sir Keith 
Joseph, Bt, MP, Secretary of 
State for Education and Science 
(Room 6, 10.30 am). 

Welsh Affairs — Subject: 

Scrutiny of Welsh Office 

quangos. Witnesses: Welsh Arts 
Council (Room 18 , 10.30 am). 
Public Accounts — Subject: 
Fraud at the East Anglian area 
office of DAHMB. Witness: Mr 
Moseley, Property Services 

Agency (Room 16, 4.15 pm). 
Social Services — Subject: Age 
of Retirement. Witnesses: Mr 


Hugh Rossi, Minister of State 
for Social Security and Lord 
Trefgame, Parliamentary Under- 
secretary, Department of Health 
and Social Security. 

Treasury and Civil Service Sub- 
committee— Subject: The struc- 
ture of personal income taxation 
and income support Witnesses: 
Department of Health and 
Social Security officials. 
Employment-Subject: Commis- 
sion for Racial Equality’s draft 
Code of Practice. Witnesses: 
Advisory, Conciliation and 
Arbitration Service; Association 
of Independent Businesses 
(Room 6, 4.15 pm). 

Energy — Subject: Combined 
heat and power. Witnesses: 
RUTon. Nigel Lawson. MP, 
Secretary of State for Energy: 
Mr David MeUor, MP, Parlia- 
mentary Under-Secretary of 
State, Department of Energy 
(Room 8, 4.30 pm). 

Committee on a Private Bill: 
British Transport Docks. 
THURSDAY 

Commons: Northern Ireland 
Bill, Committee 
Lords: Local Government 

Finance (No 2) Bill, Commit- 
tee. Debate on the Second 
Report of the EEC on agricul- 
tural trade policy 
Select Committees: Agriculture 
— Subject: Less favoured areas. 
Witness: Lord Melchett (Room 
16. 11.00 am) 

Committee on a Private Bill — 
British Transport Docks BiiL 
FRIDAY 

Commons: Derelict Land Bill, 
Second Reading. CivjJ Jurisdic- 
tion and Judgements Bill, 
Remaining stages 
Lords: Administration of Juc- 
tice Bill, Third Reading. Plan- 
ning Inquiries (Attendance of 
Public) BH1, Second Reading. 
Gaming (Amendment) Bill, 
Second Reading. 



These securities having been sold, this announcement appears as a matter of record only 



Banque Nationale de Paris 


Kuwaiti Dinars 7,000,000 
10 per cent. Notes due 1989 



Issue price 88*75per cent 


Kuwait Investment Company (S. A JC) 

Kuwait Foreign Trading Contracting & Investment Co. (S.A JL) 
Kuwait International Investment Co. s.aJe. 

Alatali Bank of Kuwait K.S.C. 

Banque Nationale de Paris 
Bnrgan Bank S.AJL - Kuwait 
Caisse des Depots et Consgnations 
The Gulf Bank k.s.c. 

The Industrial Bank of Kuwait* K.S.C. 

The National Bank of Kuwait S.A.K. 




NEW ISSUE 


March, 1983 


RICHARDSON-VICKS 
OVERSEAS FINANCE NV 

Kuwaiti Dinars J00Q000 
12’/4 percent. Guaranteed Bonds duel987 

Unconditionally guaranteed by 

RlCHARDSON^ViCKSmc. 

Issue price 100 per cent 


Kuwait Foreign Trading Contracting & Investment Co. (S. A.K.) 
Kuwait International Investment Co. s.a.k. 

■Kuwait Investment Company (SAX.) 

Kidder, Peabody International Limited 
Alahli Bank of Kuwait K.S.C, Kuwait 
AI-Mal Group 
Arab Trust Company K.S.C. 

Gulf Financial Centre 
The Industrial Bank of Kuwait; K.S.C. 

Kuwait International Finance Co. S.AJK. (KJFCO) 

Kuwait Financial Centre (S.A.K.) 



This advertisement complies with the requirements of the Covndl af-The Stock Exchange. 
It does not constitute an offer of, or invitation to subscribe for or to purchase, any securities. 

U.S.$100,000,000 

Boston International Finance 
Corporation N.V. 

(Incorporated in the Netherlands Antilles) 

1#A% GUARANTEED NOTES DUE JUNE 1, 1989 

Payment of principal and interest unconditionally guaranteed by 

FIRST NATIONAL BOSTON CORPORATION 

(Organized under Massachusetts law) 

The following heme agreed to purchase the Notes: ■ 


BARING BROTHERS & CO. 

Limited 

CREDIT SUISSEFIRST BOSTON 
Limited 

GOLDMAN SACHS INTERNATIONAL COUP. 


MORGAN STANLEY INTERNATIONAL 

COMMERZBANK AJKTIENGESELLSCHAFT 
DEUTSCHE BANK AKTIENGESELLSCBAFT 


MANUFACTURERS HANOVER 
Limited 

MORGANGRENFELL & CO. 

Limited 

SWISS BANK CORPORATION INTERNATIONAL 
Limited 


HILL SAMUEL & CO. 
Limited 

MERRILL LVNCH INTERNATIONAL & CO. 

SALOMON BROTHERS INTERNATIONAL 

UNION BANK OF SWITZERLAND (SECURITIES) 
Limited 


The Notes, in denominations ofUS. $1,000 and U.S. $10j000 with an issue price of99Vi percent less accrued interest, haue 
been admitted to the Official List by the Council of The Stock Exchange, subject only to the issue of the temporary Note. 
Interest is payable annually in arrears on June 1, commencing on June 1, 1983. 

Particulars of the Issuer, the Guarantor and the Notes are available in the Extel Statistical Sendees Limited and may be 
obtained during normal business hours on arty weekday (Saturdays and Public Holidays excepted) up to and including 
June 1, 1982 from the brokers to the issue : 


May 17, 1982 


Grieveson , Grant and Co., 
Barrington House, 

59 Gresham Street , 
London EC2P 2DS 


CANON INC. 

(Canon ITaTmaTiflci Kaisha) 

Notice to the HoUen of Convertible 

Debentures doe December 31, 1994 Con* 
vertihle into Common. Stock of Canon Tne. 

NOTICE IS HEREBY GIVEN that the conversion, 
mace at -which the 6%i9& Convertible Dabentnzes 
doe December 31, 1994 of Canon hie. am con- 
vertible into Common Stock of Canon Inc. has 
been adjusted. The conversion price as a result of 
such adjustment has been reduced front Yea 570 
to Yen 557, ..effective on and after May L 1982. 

CANON INC. 

( f!/mnp Kahafthilcj ‘gaicha ) 

May 3,1982 


KLEINWOKT BENSON FINANCE B.V. 
US $50,000,000 

Guaranteed Floating Rate Notes 1991 

convertible unta 1985 into 10j per cent Guaranteed Bonds 
1995 and unconc&fKmafy and irrevocably guaranteed as to payment 
of princ^jaL premium (if any) and interest by 

KLEINWORTi BENSON# LONSDALE LIMITED 

For the three months 17th May, 1982 to 17th August, 1982 
the Notes wBI carry a Rate of interest of 1 5 per cent per annum 
with a Coupon Amount of USS 191-67. 

C«»rtia\LBAhKlftn^^ 

Agent Bank 


i'“ 1 -i 






Financial Times Monday May :1T 1982 


Companies and Markets 


WORLD STOCK MARKETS 


F Industries 


sih 
16 * 

li& (AM Inti 
ZSh ARA 
37* iASA . .. 

11 'e AVX Corp 
251 b ‘Abbot Labs 
20 h Acme Cleve 
15 [Adobe Oil & Gas.l 
151° Advanced Micro.! 
41* Aetna Ufe ft Gael 
flis Abmanson (H.F.)i 

SI is Air Prod A Chem 

9ij Alcona 

251b Albany Int 

Hie Alberto- Culv. 

24^4 Albertson's 

17T B Alcan Aluminium 
1714 Alco Standard— 
24 Alexander ftAI... 
26 lAlegbeny lnt....„ 

32ia Allied Carp — 

24 ij Allied Stares 

18 k Al I is- dial mere,.. . 

958 Alpha Portd ...... 

22 [Alcoa - ! 

395q A mol. Sugar ; 

247b Amax 

181« .'Amdahl Corp 

154 (Amerada Hess... 

959 '.Am. Airlines 

36* lAm. Brands. 

184 (Am. Broadcast's 

25T B (Am. Can ! 

244 'Am. Cyanamid.... 
11 i B I Am. Elect. Powr.l 

395 b lAm. Express 

384 I Am. Gen. lnsnoe. 1 
10^4 Urn. Hoist ft Dk... 

33 * I Am. Home Prod.': 

374 Am. Hosp. Suppy i 
185 b iAm. Medioal Inti.' 

24 |Am. Motors 

3153 [Am. Nat. Reeces.' 

435 4 .Am. Petflna ; 

Sis lAm. Quasar Pet. 

; 246? |Am. Standard..... 

264 I Am. Stores 

544 >m.Tol. ftTel 

234 lAmeteklnc 

205« .Am lac 

464 | AMP 

214 Amstar 

i 24 JAmstead Inda.... 

1 144 ‘Anchor Hoe kg....> 

1 38 4 [Anheuser-Bh i 

! 154 Archer Daniels.. .[ 
I IBai Armco i 


134 Armstrong CK... .: 16 

7Sfl 'AsameraOil 864 

176? ;Asarco 204 

20.? Ashland Oil 254 

2454 |As3d. D. Goods.... 324 

335a {Atlantic Rich 417? 

234 Auto- Data Prg.... 254 

144 Avco ] 175? 

214 lAverylntl- ; 26*4 



Ban Cal 

Bangor Punta ... 
Eank America ... 

Bank of N.Y 

Bankers Tat N.Y. 

Barry Wright 

Bausch ft Lomb. 
BaxtTrav Lab.... 
iBeatrloe Foods... 

Beker Inda 

Bell ft Howell ... 
Bell Industries ... 

iBendlx 

[Beneficial 


197s !Beth Steel ! so* 

185* -Big Thee Inds— I 234 
125« iBIack ft Decker.. 144 

315- 'Block HR 304 

204 'Blue Bell ■ 244 

174 'Boeing. 1 204 

26 >4 Boise Cascade.... j 277? 

27 Barden • 534 

224 Borg Warner ' 284 

14 Eranfff Inti I 14 

227 b Briggs Strain 264 

514 'Bristol My era I 55s a 

12 4 I Brockway Glass. 154 
281? IBrown Forman B 564 

264 Brown Grp I 333<t 

154 Brown & Sharp..., 16 
374 Browng Ferris....; 327 B 
16 I Brunswick • 177 B 

154 [BucyruB-Eile | 154 

184 'Burlington Ind ... 23 t B 
424 'Burlington Nrttin 6O4 
17* Bumdy I8ij 

31 Burroughs B67® 

30 iCBI Inds. 35 

364 'CBS 444 

34 CPC Inti 364 

425? CSX 424 

104 'Campbell Red Li ll J j 
28* ;Campbe» Soup...; 374 
19r? 'Campbell Tagg .. 234 
244 ;Canal Randolph.l 274 

204 .Can. Pacific ; 2 E; b 

18t b Cart tale Corp | 254 

265? 1 Carnation 32* 

32 [Carp Tech [ 364 

134 Carter Hawley...! 144 

41>a 'Caterpillar 415? 

50 is :Celanese Corp... 55 
28* 'Cental 307? 

15 'Centex 23 

104 Central ft Sw I64 

284 Central Soya 114 

104 iCertain-teed 114 

16 4 Cessna Aircraft-. 18 4 
1* Champ Home Bid 3 

143? Champ Int 143? 

64 IChamp Sp Plug.. 84 

64 Charter Co 94 

521; Chase Manhatfn 52 4 
314 Chemical NY.. .. 324 
51 Cheese Pond . ... 554 
134 Chicago Pneum.. IS 

3-j Chrysler 64 

4 14 Chubb 44 

414 Cigna . - 42 4 

214 jCincinnatl Mli.... 2Z7 q 

235? Citicorp 27 4 

244 'Cities Service 355? 

203? iCity invest 244 

254 .Clark Equipment 215a 
204 Cleve Cliffs Iron.' 24 

10* iciorox J 134 

13* Clueltt Peaby ....] 164 

304 Coca Cola I 536? 

16 Colgate Palm — 177 # 
104 Collins Aikman...; 12e B 

33 'Colt Inds ._ 1 264 



19* 17 



High [ low 


61.6 Gist Brocades— 

47.6 Heinakon 

14.9 Hoogovsns — ™ 

6.0 Hunter Douglas. 

19.1 int-Muller. — . 

86 KLM 

24^8 Naarde'n - 

104 Nat Ned Cert — 

38.1 Ned Cred Bank. 

109.8 Ned Mid Bank « 

108 Nedlloyd ..... 

6&0:0ce Grinten ..... 
SGJZ'Ommoren (Van) 

37.5'Pakhoed , 

90.3 Phillips- 

21.5'Rljn-ScheEde ..... 

204.0>Rob«co 

lUL2|Rodamco 

188.9 [Roil nco 

13G.3iRorento 

71.8'Royal Dutch- 

7 l.ztalavan burg's. .... 
176 hiokyoPaoHg 



May 14 I Price 


334 | 264 1GATX 


Gannet 1 

Gclco 

Gen Am Invest ... 

■Gen Cinema 

Gen Dynamics ... 

Gen Electric 1 

,Gen Foods ' 

Gen Instruments! 

Gen Mills 

Gen Motors 

Gen Pub Utilities. 

Gen Signal 

Gen Telep Elec... 

Gen Tire 

■Genesco 


Genuine Parts. 
Georgia Pac.... 

Geosource 

Gerbes Prod,... 

Getty Oil 

Giddens Lewis. 

Gillette 

Global Marine- 
Goodrich iBF)- 
.Goodyear Tire. 

Gould - ...... 

Grace 

Grainger tW.Wi 


15* Lanier Bus. Prod| 

j 22* iLeas-Siegler ' 

284 1 24 i Leare way Trans. i 284 


Sls B [Lenox j SB4 

204 ILevi Strauss | 264 

21 Levita Furntr | 364 

214 [Libby Owens FcL 234 

52 [Lily | Eli).. — I B87 B 

384 [Lincoln Nat— J 434 

44* [Litton Inds...— .... 44* 

435a [Lockheed- ! 487? 

794 [Loews. 907 b 

304 'Lone Star Inds.... 205s 
245? Longs Drug Strs. 294 
334 [Louisiana Land... 30 4 
I64 'Louisiana Pac-... 19s? 

354 iLowonsteln 264 

174 Lubrizcl 214 

135s [Lucky Strs 14* 

17* 'M/A Com. Inc — 22 4 

38* MCA. 54* 

144 (MacMillan 1 154 


■Mac. 

Mfcre Hanover... 
Manville Corp. .. 

Mapco 

Marine Mid 

Marriott 

Marsh McLenn.. 
Marshall Field- 

Martin Mtta 

'Maryland Cup... 

Masco* 

Massey Fcrgn. .. 
Mass Mufti. Corp 

Mattel 

May Dept. Strs . 


Maytag 

McCulloch 

McDermott ,’JR/.. 

McDonalds 

McDonnell Doug 
Me G raw Edison.. 

McGraw-Hill 

McLean Trukg ... 

Mead 

Media Genl -j 

'Medtronic 

Mellon Natl j 

[Melville ; 

[Mercantile Sts,...l 
Merck 

■Meredith 

.Merrill Lynch —I 


K arlan Assocs. ... 
ernitron..... I 


13* ■ 114 
644 ■ 40 

19* : 1x4 
53 38* 

344 ' 244 
634 ; 514 
354 : 21 
347 S ■ 27* 
344 l 344 
434 ; 37 i s 
26'? 314 

24* 1 194 
5* ' 3 4 
224 104 

37* i 31T B 
33* SO 4 
29 , 244 


'Virginia EP [ 

Vulcan Matris—. 

I Walker 1 H> Res... 

I Wal-Mart Stares. I 

Wamaco 1 

Warner Comma..; 
Warner Lambt...j 

S ashing ton Post, 
oste Mangt 

IWeis Mkts. ; 

'Wells Fargo. 

W.Point Peppi. . : 
.Western Airllnos 
Westn. Nth. Am r.) 
■Westlnghousa ....! 

Westvace j 

Weyerhaeuser— . I 


GERMANY 


1983 

High [ Low 


[Wheelobratr F... 33* 
•Wheeling Pitts . 1 16* 

'Whirlpool 29 

WiRe Consoltd.. 28 

Whittaker 26 4 

Wlckes ; 3 

williams Co- 194 

Winn-Dixie Str...., 16 r? 

'Winnebago 64 

iWisc Elec Power 314 

Woolworth 197 b 

■Wrlgley 314 

iWyly I 84 

Xerox 354 

Yellow Frt Sya ... 13* 

Zapata. 1 204 

iZenith Radio I 154 


NEW YORK 


Indices 


—DOW JONES 


May May May May : May May 


Since Cmpil't'n 



Low ‘ High 


May 

May 

May 

May ' 


MBS 

14 

13 

12 

11 

High 

Low 


• IndustrMS 857.78 859.11 8S5.77B65.87, BGQ.9S BBS. 20 BB2.51 7SH7 1BB1.70 41.22 

. ! i4; li . UI.'I/«m2.7i32| 

H’moBnds. S9.99 60.06 69.95 59.52 60.06 , 69.61 BU.06 66.67 — — 

i ; 1 lfl;5» i <I2v2i 

Transport.. 350.64 350.22 360.70 35SJ4! 349 .65 ' 562.90 688.48 . 314.36 447.58 12.32 

j . , (7/ll (Biol i16;4/Blj (8f7i32) 

Utilities ' lI6.S711B.ZZ Iie.re iT6.9T[ 116.59, 1I6J5. T 16 f 105.6 r 165.52 10.5 

I I | I | | j (It 61 115/1] 1 20f4/S9| (29/4/42) 

TradlngVoll 1 ■' 1 ill 

000-t j 49,9M|5B^50j59^ TO|54.680j 46,509 1 67,l«j - j - j - - 

* Day's high 864.54 low 653.88 


May 7 April 50 | April 33 Year ago (Approx 


AUSTRALIA 
All Ord. iMiOT) 

Metal ft Minis. :l 1/99) 


S19.5 ' 520.4 526.5 615.4 . 
379.8 . 584.6 396.B ■ 596.5 


996.5 ?4.'l) 
425.1 i5/1) 


46S.6 flO.'J) 
522.2 I2j4i 


AUSTRIA 

1982 

High Low 

1 

, May l* 

Price 

222 

211 

Crcdlt'stait Pfd..; 

313 

204 

180 

LacnderbankP(d| 

183 

301 

258 

■Perl mocser 

299 

108 

86 

Semperit 

71 

17B 

160 

ISteyr Daimler 

160 

210 

. 190 

‘.Ueitschor Mag 

200 


1 AUSTRIA 




j Credit Aktlen (2/1/92) 

: 5ZJ6 62.47' 62.46- 62.46 

SB. 98 (4/1) i 

82.T6 (18/4) 


STANDARD AND POORS 


Since CmpiPt'n 


I May • May May 1 May , May ! May 1 ' i 

14 13 1 13 ' 11 I 10 j 7 ! High ! Low : High [ Low 


Indust'ls-..! 131.66 151J5 1 133.74 132.38 131.74 155.05; 1S7.E8 , 118.41 , 16DJ6 3^2 

I I i4'11 ,8;3l ''.SB. - 1 1,"80. iJO.6'32 1 

Composite 1 119.81 118.22 118.17 118.42; 118.58 119.47 122.74 1 107.54 140.52 4.407 

^ ' f4.-li • .3.5' l2Bi 11:88 M/6 52i 


. May 12 ■ May 5 April 28 Year ago fapprox) 
Ind. dlv. yield % — — — — 1 — — — — . — — — rrr 


ind. P/E Ratio 


Long Gov. Bond yield 



HOLLAND 

ANP-CBS General fT37«> , 94.2 94 J 94.7 94J 96.0 (IDiS) I 84.0 rc/l) 

ANP-CBS indust f1B78i 73.9 73.8 74 J ' 74 J ■ 74.9 (ID/5) 85.2 >4/1i 


HCNQ KONG ! 

Hang Seng Banki51/7/84 1 367 .S3 ' 1385.8b I5B7.56'1E81.S6 1445.52(12/1) ' 1128.85(8/5/ 


JAPAN** 

Dew Average (1B/S/49) [7675.81 7603^1 7559.787659.12 7928.55(27/11 '5889.65(17/5) 

Tokyo New SE(4,>I/S9; I 560.73 . 582,281 667 J)4; 667.59 985^8 |27/1i 520.70 1 17/5i 


Rises and Fails 

NY. S.E. ALL COMMON May 14 May 13. May 12 

I 1 *1 OH? * 1 

gig [Sri'S g -: 1 cz' w5r.T^-i*^i ri™ 

srae=; ^ 1 1 | j 4 « 


NOW LOWS 





aisaniiXT 


Phmnbwmb 


SINGAPORE 



1982 

May 14 

Price 

High 

LOW 


5 

2.28 

2.0 

Boustead Bftd.. 

. 2.23 

4.4 • 

3.54 

CoM Storage.... 

. 4.06 

8.7 

7.1 

DBS- 

8.35 

&.7S ; 

5.15 

Fraser ft Weave. 

. 6.65 

3.7 

2.6 

Haw Par. 

. 3.D8 

2.21 

1.76 

Inclicaee Bhd. 

. 2,18 

7.7 

5.4 

Malay Banking. 

. 6.45 

5.35 

4.58 

Malay Brew 

. 5.00 

12.7 : 

9.20 

OCBC 

9.20 

2.92 ■ 

2.16 

Sima Darby 

. 2.33 

10.6 - 

7.55 

Straight* Trdg . 

. 9.95 

4.98 ; 

3.98 

UOB 

.. 4.40 

SWEDEN 



1982 

May 14 

' Price 

High 

Low 


Kronor 


2.80 Abercom 

6.85IAE ft Cl 

10.75 Angle Am 

72.0 Anglo Am. Gold... 
2,40 Anglo Am. Prop-- 1 
7.8 .Barlow Rand ... . 

33 iBuffels 

6 CNA Invest [ 

2. 15 Currie Finance.. : 

5 'De Beers 

20.8 [Drtefontein - 

35.5;FS Goduld 

59 :Go1d Fields S.A_. 
3. 77: High void Steel..' 

7.7 Huletts 

26.5 [Kloof 

5.5 Hcdbank 

16^5 OK Bazaars- 

2.35 ProLea Hldgs. ; 

9.50 Rembrandt- - . 

3.0 Ronnies : 

3.60 Rust Plat 

2.« Sage Hldgs 

4.2 SA Brews 

15 Tiger Oats. .. _ . - 
3 Uniscc 


Financial Rand 
U.S.$0.81:1 
{Discount of 14%) 


MONTREAL 



Industrials f 3SS.1Sj 289441 292.S7j 282.88' 332.79 (4.1) | 278,46 (16.3) 
Combined I 271.68 274.41/ Z74Jlj 316J8 (4.1) j 293.08 (16.3) 


Madrid SE 138/12/81) ■ 161.0 , 101 Aj W1.80. MUg 107.46 (8/3) | 18,17 (6/1) 


SWEDEN ; I ! ' i 

Jacobson AP. (1/1/68) 589.76, 5 UM\ 6B5J» 665.73: 636.52 (22/1) , 655 JH (29/4) 


TORONTO Composite' 


ijlBTOJ | 1586 A 1692.0, 1966.5 (4.1) 



Thursday, Slocks Closing on 

ire bed price Jay; 

Amer. Airlines 1.849.200 17 5 # -rl 

Sony 1,454,700 16 1 * (+• \ 

Boeing 1.073,900 2V« Ff ^ 

Sraniff 954,600 •- * 4 

Mid. So. Utl. 872.700 13 s 4 •- k 


NEW YORK ACTIVE STOCKS 

Change 


Datapoint 
Delta Air 
.Trans World 


Change 

Stocks Closing on 
i reded puce day 

723,400 14*i +1»» 

694.100 32\ +1 5 2 


Capital Inti. (in/7B; 


— j 158.9 ; 140J . 140-8 ; 147-2 ;«J1) 


123.1 (17/1) 


TransWorld .- 643.903 21 J « {+ 

Tandy 589,700 28>* H- h 

K. Mart 553.700 h 


(**) Saturday May 8: Japan Daw 7559.17. T5E 559.31. 

Base values of all indices era 100 except Aosiralie AH Ordinary end Metals— 
*00. NYSE Ail Ctunmca— 50: Standard end Poors— 10; and Toronto— 1,000: the 
lie: ncurad based on 1575. t Excluding bonds. 2 403 Industries. 1 400 
industrisis plus 40 Utilities. 40 ficossiais sad 20 Traaspcrts. c Closed 
u Uni vaiJoblOt 


2 89 1 
191 | 
158 ; 
1,761 ■ 
95 ! 
150 
130^! 
272 
6S0.Z 
145 • 


87 -East Asiatic — .... 

517 iForcneda BryggJ602.4 
38b iForsnede DampJ4Q4 

262 IGNT Hldg 1273.4 

170 jjyske Bank 175 

136 ;Nord Kabcl. 136 

1,400 Novo Ind. 1,625 

W 'Papirfabrlkkar... 91.4 

133.0 Privatbonken-...!l35 

113.0 Provlnctxuiken... 115 

215 iSmidth (FI) 215 

«5 S.BerondtW) 518 

81<*/Simrfei, 99.4 


BRAZIL 


US 1.32 Acesita. l.bB 

14.70 9.45 Banco Brasil 14.70 

fi.lD 3.1 rBelgo. Min 5.10 

8.85. 6.50 Logos Amer 6.75 

11.10 6.3 Potrobras PP. ' 11.10 

11^0' 6^1 Sousa Cruz 11.20 

15J) ' 4.65;Unip PE- ■ 15.00 

1635' 7.6 Vale Rio Doce..„> 16.70 


NuiEan ■ Pric es on tfcta page are as 
quoted on the Individual exchanges k 
and are toot tmded prices. S DoelAgs Jb 
auepsadod. «f Ex dividend, xc Ex scrip V 
Issue xr & rights, xs Ex «H. 


Artificial fibre 
production down 

PRODUCTION and deliveries of 
artificial fibres remain de- 
pressed. according ip figures 
from the British Alan-Made 
Fibres Federation. 

After a slight recovery in ihe 
fourth quarter of last year, 
production in the first quarter 
of this year fell back to 92,034 
tons, 10 per cent down on the 
first quarter of 1991. 


M40 inquiry date 

THE public inquiry into .the 
last 46 miles of the M*Q. which 
viH Enk Oxford witit Binoire- 
ham. is to start- at the Winter- 
Ganiens, Banbury, on Septem- 
ber 14. The existing M48. 
starting in London. ! cnd* T 'at 
Watcrstock south of Oxford- 
Some SOU objections have been 
lodged against ~ Mhe. seenmi 
strctvh of the mofonviy- 





































































































21 


Flhandaigsb'es Monday May 17 1982 


EUROBONDS 


The Association of Inter- 
national Bond, Dealers 
Quotations and Yields 
appears monthly in the 
Financial Times. 

It will he published on 
the following dates: 


CONTRACTS AND TENDERS 


Wednesday 16 th June 
Tuesday 13th July 
Monday 16th August 
Tuesday 14th September 
Wednesday 13th October 
Thursday 11th November 
Tuesday 14th December 


There is a limited 
amount of advertising 
space available each 
month. If your company 
is interested in taking 
advantage of this offer 
please contact: 


The Financial 
Advertisement 
Department 
on 01-248 8000 

Ext. 3266 or 3389 


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(Minimum size 30 column cm*) 
£6.00 par single column cm oxtra 
Far further derails write to: 

Classified Advertisement 
Manager 
Financial limes 
10, Cannon Street, EC4P 4BY 


ART GALLERIES 


COVENT CARDEN GALLERY, 20. Runell 
St. WC2. 636 1139. A Selection of 
Decorative and Interesting Earlv British 
Watercolours and Drawings. OPENS 
TODAY. Until June 4th. Dty. 10-5.30. 
Thurs. 7. Sat*. 10-12.30. 

COLIMA GHI. 14. Old Band St.. W J. 01-491 
7408. 19th CENTURY FRENCH DRAW- 
INGS until 11 June. Mon..Fri. 10-6. 
Sat. 10-11. 


INTERNATIONAL PREQUALIFICATION 

NOTICE 

ISLAMIC REPUBLIC OF MAURITANIA 

SOGIETE NATfONALE INDUSTRIES ET MINIERE (SHIM s.e.m) 

SOCIETE NATIONALE INDUSTRIELLE ET MINIERE, Sod£t« d‘ Econo uric 
Mixte (SNIM-sem) with a registered capital of UM 9,039,500,000 (US$ ISO million), 
is carrying out a major project (US$ 450 zziilion) in Zouerate (Mauritania). 

This project, both nationally and internationally financed, alms at producing 
concentrated iron ore and includes equipment and open-cast minin g installation, 
crushing, magnetic separation and continuous handling. 

For the training and maintenance personnel for these installations, SNTM require 
the assistance of specialised firms, to devise and elaborate, in French, training 
programmes suitable for the equipment and installations to be set up, to apply 
them to some of the staff to be trained and to ensure the transfer to SNIM 
t rainin g structure. 

Training programmes deal with the following units: 

Unit 1 : Executive mechanic 

Unit 2 : Dumper mechanic 

Unit 3 : Shovel and drill mechanic 

Unit 4 : Earthmoving equipment mechanic 

Unit 5 : Mechanic appointed to preparation of mechanical work 

Unit 6 : Diesel motor mechanic 

Unit 7 : Power plant diesel motor mechanic 

Unit 8 : Machine assembler - 

Unit 9 : Machine-tool mechanic 

Unit 10 : Boilermaker-welder 

Unit 11 : Handling workshop and plant mechanic 

Unit 12 : Handling and plant operating mechanic 

Unit 13 : Hydraulic engineer 

Unit 14 : Executive electrician 

Unit 15 : Electrician all machines 

Unit 16 : Electrician appointed to preparation of electrical work 
Unit 17 : Power plant handling and plant electrician 
Unit IS : Coiler 

Unit 19 : Electronic instrument electrician 
Unit 20 : Executive plant operating 
Unit 21 : Operator power plant and plant 
Firms interested may request their qualification for all or part of these units. 
The selection of the firm(s) is to be done further to a call for tenders, with 
precise technical specifications, stressing among other things required results. 
Anticipated time-table is as follows: 

Selection of the firms : 06/30/82 

Issue of the call for tenders : 07/01/82 

Deadline for tenders : 10/01/82 

Contractual start-up date : 01/01/83 . 

The anticipated start-up date of the Project being July 1984, most of the training 
must be completed during 1983. 

Firms wishing to tender are requested to send SNOT a prequalification application 
with the following information: 

1 — Registered name, equity, annual report and balance sheet 

2 — References in the training area (training of industrial supervisors, 

maintenance and operating, in France and abroad) 

3 — Means in staff and equipment 

4— Curriculum vitae of the main agents likely to carry out the contract 

5 — Earliest anticipated time for handing over the tender 

6 — Earliest anticipated start-up date after notification of the contract 

This application, stating the references of the Unit(s) for which the firm is 
tendering, should be sent before June 15th, 1983 ito the following address: 

SNIM-sem 

Direction Administrative 
5 rue Scribe, 75009 PARIS 

GUELBS PROJECT — TRAINING PREQUAUFICATION 

SNTM reserve the right to turn down an application without substantiating their 
decision. 

The pre qualified contractors will be notified by a letter, stating, among other 
points, the non-refundable amount to be paid for the tendering documents. 



COMPANY NOTICES 


LAFARGE COPPEE (CEMENTS LAFARGE) 
7i% 1972/1987 FF 100,000,000 

Notice is hereby given to Bondholders of the abo7ementioned 
loan that the amount redeemable on July 1. 1982, i.e. 
FF 5,000,000 was bought in the market 

Amount outstanding: FF 65,000.000 

THE TRUSTEES 
FINiMTRUST S.A. 

Luxembourg, May 17, 1982 


FINANCIAL TIMES 

PUBLISHED IN LONDON A FRANKFURT 

Date Hftee Tin HrmbW Ttarei United, Bracksa Hmm, ID Cmn Start, Lwtew K4P «Y. 
Tries B954S7L Trig; Wurthfat) 885083. T riUtam: Ri miHw , Ur 8s«. T ri c» h — «; OWOWfla 
FttaMrt ware* Wm n—d ri Tbott t£mepe) U*. OdetMHb. 54, D4BOO 1, 

Wait Gmnf. Tain: 4UUL Tetepiwre: 7S9B-0. Mtortsfc MhAi 7KL Trite 4U0S2. 
TdtfriKOt: 73W 157. 


INTERNATIONAL & BRITISH EDITORIAL & ADVERTISEMENT OFFICES 
M. Bn 12W, A mIm ImATiIu; Uteri*. EsjMKtea 32, MterM X Tsfc 441 *772. 
145Z7. Tefc Zft 796. HlswIwifT EWwW J oat JUheH Un f W1 

nifMlnmtmr- UhW ate JUmtUme b«K Km- Wmm St, K2 5HT. IMret MW15. Tsfc 
hS^Swj STms IPS. Trite aSsErS uSbum. 

021-<S4 0922. Meriee CUrtate 4» k Rtfam 122-lfl, Msriur 

State Praetoare 11/104 ItinmMM 2-UL Ttfttt 60F. talc SS5 D6S. 

B8M542. aiOtBB. Mtici w i KUBtwfcy 14, Aw rta n ni I, Mw . 

prusm*: 39 But Daerie. Triac 23285. Tax; 532 Trike 433500 Ftaaa- Tit W MS. 

1«4- Ttfc 532 90SJ- Hm Ytriu EMerU ate A tow toh w 75 

tom Mm Mflefa Sfln K*t 7, Ha. 74 fcUaWf Hn M.V. 10019- SMMWTaha 
M* Carlwte 456, CwN> ML Ttk TWa 

9947696. 3840*. Tsfc (2121 489 8800. 

OthK RA Bax 2D4S. Tab 75M82. Pate £*w««te A4wr«a-C*rtre CAfWre. 

* , 3Esa:s^3»-' , * c - 


JOCJETE MATfONAU DCS CHEMINS 
DE FER FRAHC A1S 

Pl% 1967-1 90S US S30.000.000 
NOTICE TO BONDHOLDERS 
The US S2.000.000 redemption Initai- 
mant due June IS. 1982 hu been 
met by ■ drawing of bonds by lot 
on April 30, 1982 In the pretence 
Of a notary public. 

Distinctive numbers of ttie bonds 
drawn: 

9774 ri 4920 Industn 
(taking account or previous rapnr- 
cbasesl. 

Dutstandlno amount after the re- 
demption on Jane IS. 1982 US 
SfiiOOO.OOO. Bands drawn will cease 
to bear Inter eat on June 15. 1982. 
Bonds presented lor repay meat must 
have ttelr coupons as at June 15. 
19B3 end subsequent attached and 
will b« paid in accordance -with- toe 
conditions shown on toe bonds. 

Previous redemption instalments: . 

Juno 15, 1978: Nos 29131459a 
Inclusive 

June 15. 1979: Nos 2 030 a. '228 SO 

Inclusive 

June 15. 19BO- Nos 17015/26046 
Inclusive 

June IS; 1981: Nos 461519773 
Inclusive. 

MOV 15. 1982. 


THE NATIONAL BANK OF 
AUSTRALASIA LIMITED 
(Incorporated in the State of 
Wctoria. Australia) 

NOTICE IS HEREBY GIVEN that the 
Registers of Members end Transfer 
Books of the Company will be doted 
on Friday 2Btt May. 1982. for one 
day. only for the purpose ofoayroent 
Of Interim dividend on 2Sth June, 
1982. Transfers must be lodged not 
later than S O.m. on 28th May. 1992. 

By Order of to. Board Of^remocj. 

B. Comm- F.C-I.S. 

Secretary. 


LEGAL NOTICES 


IN THE MATTER OF 
LONDON AND CALIFORNIAN 
. PUBLISHING LIMITED 
AND IN THE MATTER OF 
THE COMPANIES ACT 1948 

NOTICE IS HERESY GIVEN that toe 
creditors ol toe above-named Company, 
which is being wound up, ate required 
on or before the 2Dto day of June 1902 
to tend In their lull nemos. their 
addresses and descriptions, full particu- 
lars of toelr debts of claims, end the 
names and addressee of their Solicitors 
{If any) to me undersigned. Gerhard 
. Adolf Weias, PC A, of Cork Gully, Guild- 
hall House. 81/87 Gresham Street, 
London EC2V 70S. too Joint Liquidator 
of toe said Company, and. If so 
required by nodes in writing [ram the 
said liquidator era, personally or by 
their Solicitors, to come In and prove 
their debts or claims at such time 
and place as shall be specified m such 
notice, or in default thereof they will 
be excluded Irom toe benefit of any 
distribution made before such debts 
ere proved. 

Dated this 23rd day of April 1982. 

G. A. WEISS. 

Joint Liquidator. 


INVITATION TO PRE-QUALIFY 
FOR THE MAINTENANCE OF 
THE SAUDI ARABIAN TELEVISION NETWORK 

(SECAM STANDARD) 
for a period of three years 


Section AA , 

The Ministry of Information of the Kingdom 
of Saudi Arabia invites the specialised 
companies having experience in the main- 
tenance of large professional colour tele- 
vision networks. The confident companies 
are required to submit prequalification 
applications with other supporting authenti- 
cated documents as follows: — 

A-l Documents pertaining to the financial 
status of the company. 

A-2 Previous experience in maintaining colour 
television networks. State very clearly 
when and where the previous colour tele- 
vision networks have been maintained and 
state size of these contracts. 

A-3 Submit good performance certificates if 
achieved. 

Section BB The current size of the Saudi 

Arabian Television Network 

B-l (6) Six Main Television Stations existing 
in the major cities of Saudi Arabia. Each 
TV station has production and transmission 
facilities and equipped with professional 
broadcast standard television video and 
audio equipment. 

B-2 (9) Nine Mobile Television Transmitting 
Centres. Each centre has two transmitters 
and other general television programme 
transmitting equipment. 

R-3 (5) Five Television Transmitting Centres. 
Each centre has two TV transmitters. These 
centres receive video and audio through 
co-axial cables. 

B-4 (27) Twenty-seven Television Transmitting 
Centres. Each centre has two TV trans- 
mitters and receives video and audio 
through Saudi Arabian Intra Kingdom 
microwave network. 

B-5 (12) Twelve Translators (Transposers') 
located in twelve different locations. 

B-6 (4) Four television small studios existing in 
four different locations. 


NOTICE OF AN 
INTERNATIONAL INVITATION 
TO TENDER 

The Organisation for the Development of the Senegal River 
(Organisation pour la Mise en Valeur du Fleuve Senegal) 
(OMVS) is issuing a competitive invitation to tender for the 
supply of the following wagons, which the African Development 
Bank (BAD) is being requested to finance; 

— 10 open wagons (with lateral discharge) 

— SO covered bogle wagons 
— 20 container wagons. 

The Invitation to Tender is open to ail suppliers, with the 
exception of those who are nationals of South Africa. 

The dossiers may be obtained from the Office of the High 
Commissioner of the OMVS. S Place de I'lndependance in 
Dakar, upon payment of 30,000 CFA Francs. 

Submission of tenders: Friday. 16 July 1982 at 12.00 noon at the 
Office of the High Commissioner of the OMVS. 

Opening of tenders: Friday. 16 July 1982 at 4.00 p-m. at the 
Office of the High Commissioner of the OMVS. 
implementing body: OMVS 
Telex: 670 ORMIVAF 
Telephone: 22.24.69/22.27.77/22.06.68 

Bodies responsible for the purchases: 

R.CF5.: Regie des Chemins de Fer du Senegal 
(Senegal Railways Administration) 

R.CFJM.: Regie des Chemins de Fer du Mali 
(Mali Railways Administration) 

MOKHTAR OULD HA1BA 


PERSONAL 




EUROPEAN 1NVE5MENT 
BANK — EJ.B. 

7i % 1973/1988 
FF 20 0,000.000 Loan 
Nona: is hereby given m bond- 

hohtors of to* ibooe Lai" that e 
ninth redemption of FF J -000.000 
wv effected before M*j> IS- 1982. 
Amount outstanding on May 15. 19B2: 
FF 1J7.000.000. 

Luxembourg. 

May 18, 1982. 


ELMYR de HORY FAKES 
own ■ magnificent 
Monet, Renoir, Van Gogh, 
Toulouse Lautrec 

Private collector has for sale those 
signed unique oil paintings by the 
master forger ol our own time, the 
Ian Elmyr de Hory- 

London 01-485 4828 


PUBLIC NOTICE 


GREATER LONDON BILLS 
BUM Issued 13.5-82. maturing 


CONTRACTS 

ami 

TENDERS 

ADVERTISING 

APPEARS 

EVERY 

MONDAY 

The rate Is 
£27.50 per 
single column 
centimetre 


EDUCATIONAL 


WANDSWORTH BOROUGH 
' COUNCIL 

Part renewal of district heating 
meins at Roehamplon 
Contractors wishing to be con- 
sidered for selection to tender for 
the replacement of approximately 
1.000 metres of hot water flow and 
return dietribution mains forming 
pan of the district heating matne 
on the Alton West Estate S.W.15 
should submit names to the 
Director of Administration, The 
Town Heft, Wandsworth High 
Street. London SW18 2PU. By 
4th June 1S82. 

The work will involve forming a 
trench adjacent to the existing heat- 
ing duct and installing new pre- 
Insuleted mains. The existing mams 
will provide a service to the estate 
during this period, 
it is anticipated that the specifica- 
tion and drawings will be issued 
by the Actlnq Director of Develop- 
ment to selected contractors in 
June 1982 and the centred period 
will commence in Julv/Augusi 1982. 
Aoplicents must submit details of 
labour, technical and . supervisory 
stall available, together with nemos 
and addresses or two technical and 
two financial referees, unless this 
information has already been pro- 
vided for a similar contract within 
the fast .twelve months. 

The engineering design for this 
scheme will be oiovided by the 
Council's Acting Director of 
Development. 


Usbeoi Face ee wegrie 58-lfl, LSSs* 2. Tam 
12533. Tit 362 SOB. 

Far Share Index and Birimsf News Summary, Ttfephoite 246 0026 
(puaber* p r e cede d fey tin appropriate am code vadd far London* 
* Bfmribgfcan], Umyosl and' Manchester). 

U adtttWMf l» aWlect to tot ntotttar's cantnt nmndtaMdm, «f*s «f wtefeiis mdWi* 


U -S. 520.000.000 

9’a FEW CE NT BONDS DUE 1988 

Bondholders a re hereby informed that the 
July 1. 1982 redemption mstHmeot ot 
U.S.S1 £25,000 h« Wi lull* 
through mrrch*m In t»i# OP»n mariwc. 
leaving a bnlant* remeW <M Circulation 

te«r toi, dte. - 

SANK. rfkA-fl 

Principal Paring Agent. 

May 17. 1982. 


fz&sz 12.4427ft. " Total applica- 
tions £23 0.5m. Bills outstanding £G0m. 


CLUBS 


EVE has outlined toe other* because of a 
policy or fair play and min* for money. 
Supper from ID -3 JO am. Disco and toe 
musicians, glamorous hostesses, exciting 
floorehows. IBS, Regent St, 01-734 0557. 



B-7 (3) Three Microwave Networks in three 
different locations, being used to carry the 
television programmes. 

Section CC The Work and Services required to 
be carried out as follows: — 

C-l Maintenance of all existing electronic equip- 
ment, power generators, air-conditioning 
systems, towers, antennas and other related 
equipment in each television station and at 
every site as stated above in Section BB. 

C-2 Maintenance and cleaning of the buildings, 
premises and gardens of each television 
station and at every site as stated in Section 
BB. 

C-3 Regular supply of all spare parts require- 
ments for the above-mentioned TV network 
either from the local market or from 
outside the Kingdom. 

Section DD General Conditions regarding 
receiving of the prequalification 
applications. 

D-l Monday, 7th June, 1982 is the last date for 
receiving the prequaliiication applications 
including requested documents. 

D-2 Applications can be delivered m person or 
despatched by a registered airmail 
addressed to: — 

H.E. Assistant Deputy Minister for 
Administrative Affairs, 

Ministry of Information, 

Riyadh — Kingdom of Saudi Arabia. 

D-3 If additional information is needed kindly 
contact at Telex No. 201030 SAUD TV SJ. 

D-4 All prequalification applications will be 
honoured If submitted within the specified 
time limit. Qualified companies will be 
contacted later to submit their tenders for 
the maintenance of the Saudi Arabian 
Television Network for a period of THREE 
YEARS according to the terms, conditions 
and specifications of the Ministry of 
Information. 


KINGDOM OF MOROCCO 

OFFICE NATIONAL 
DE L’EAU POTABLE 


CALL FOR TENDER No. 24/DE/82 
SUPPLY OF DRINKING WATER TO THE TOWN OF 
AL HOCEIMA AND AREA 


The Office National de I’Eau Potable (ONEP) have issued an 
international call for tenders concerning the project of supply 
of drinking water to the town of AL HOCEIMA from the dam on 
the Oued NECKOR, 25 kms S.E. of the town, with a debit of 
44(J litres /second. 

The project will be undertaken with the financial participation 
of the KREDITANSTALT FUR WIEDERAUFBAU (KFW). 

Offers ore to be made only for the following works: 

PART No. 2: INTAKE PIPES (Call to tender) 

Supply, transport Bnd laying down ol pipes ug-Btream to down- 
stream as follows: 

* Plain water piping: 0 600/380 ml PC: 10 

* Purified water piping: 0 600/7200 ml PC: 10 to 15 

0 500/14.810 ml PC: 10 to 18 
a 400/525 ml PC:7Q 

including joints, taps, hydraulic machinery, ete. 

■ — Complementary worts such as: 

Check-holea. thrust blocks, ouads crossings, etc. 

PART No. 5: EQUIPMENT OF HIGH PRESSURE PLANT 
(Preselection Advice) 

“fr, tU h/ Kn'IfJ K re "‘ ,S “ t,0 fi. 0i th “ B{ » l,, P' n8nl ,or » w B h Oneaute plant 
tank: bUI 1 bat * aen lh * 9r«Yi*y lesd-tank and the town distribution 

debit, simultaneous or not ot: 160 to 
yw 210 10 230 ’7s: 260 to 280 I/s; 237 I/s HMT variable. 

such as: pipe snd tuba works, taps and 
hydraulic machinery, other equipment. 

— eorwoF trflns,orn,er stB,ion . control and protaction units, ramou 

part mu« ht n ,‘h 8 J P“ y . 9 J lbrnlt 1or ai, h"r or both PARTS, but oach 
part miiBt be the object of a separate offer. 

h?. n H u, M and the deposit representing 1.S% or the BmounT 

"SOUMlIsloN^-^J^^n 815 ‘ n "" anwata » a hMring theTerm 
sndoaed in a second envelops containing the 

Smu ;.5 n ";XiS:."“'“ s u " 6 "“" <°' •""■f «• ■ 

documents may be obtained ar a cost ot DH 1,000 bv writino 
to bIT Division. Quartier Administratil, RABAT. Payment is 

10G-11^MAROC.' Mons BUf 18 Dire t“ur General de I'ONEP. CCP-RA8AT 

a» iiL 1 i h d ,, i"'.ajj:3 , r e-stdI*: £■ 

a|* ia1»Vaure ELUH ' M0R0CC0 ' the closing date being ifi JUNE 1982 


INTERNATIONAL 

BIDDING 

Under the terms of the World Bank loans, the Port of Bar 
Working Organitttion/PBWO, Bar, Yugoslavia, invites bids 
for construction and delivery of: 

P ort “.e- boat * °f 1500 hp each, equipped with fire- 

Sm«SSS “ nd ** a P rote etion equipment, with 
VOITH-SCHNEIDER type propellers. 

Date for delivery of tugs should be as early as possible. 

1 hi* p 6 Rwn b ‘ - obtain the bidding documents from 

the PBWO at 81350 Bar against payment of dinars 10,000 to 

i r ic«rn C ° UnC l N o - for Yugoslav .bidders, or 

USS350 to the account No. 201 00-620-37-25730-421/25 f or 
foreign bidders, ar the Investieiona banka — Udruzena banka 
Titograd, with indication RO Luka Bar — RZ Izgradnfa. ’ 

TS* e !f , £?F * ,tt .* Pr submission is 10.00 hours on July 10. 

, , «!. ub ,c °P emn 8 of b 'ds will take place on the same data 
at ? 1.00 hours at PBWQ’s office. 

.Bidders from countries eligible under current World Bank 
Procurement Guidelines are invited to participate in thk 

oJOQinje 


[*• * w *,*.*•.*.■*.*.*,*.*■+ * *.*■*■*•,* ★,* * + * *.*.*.»•* ■* * 














22 


SKts CURRENCIES; MONEY and GOLD 


MONEY MARKETS 


BY COLIN MILLHAM 


A week of hopes and fears 


LONDON SHORT-TERM interest 
rates moved up nervously as last 
week drew to an end. Earlier 
rates bad maintained the recent 
downward trend, with the fixed 
periods easing down to around 
13 per cent by Wednesday. This 
partly reflected the lack of any 
bad news from the task force in 
the South Atlantic and was also 
a sign of growing optimism 
about Britain's economic pros- 
pects. 

On the other hand the lack 
of progress in the diplomatic 
efforts to solve the Falhlands 
crisis, left the market very wary 
by Friday, fearing a possible 
invasion of the islands over the 
weekend. At the same time 
there was disappointment at the 
recent trend in U.S. interest 
rates, with three-month U.S. 
Treasury bills moving up to 12.34 
per cent on Friday, from 1220 
per cent at the end of the 
previous week. Over the same 
period three-month London inter- 
bank rose to 15& per cent from 
13 tV per cent. 

The total shortage of day-to- 

FT LONDON 
INTERBANK FIXING 

3 months U.S. dollars 
bid 14 11/16 i offer 14 1I/IS 

6 months U.S. dollars 


day credit in London was around 
£1.75bn, but the Bank of England 
seemed to find unusual difficulty 
in forecasting the size of the 
daily shortages. On Wednesday 
the figure was revised three 
times, eventually rising to 
£150m from the first estimate of 
£50 m. The forecast was also 
raised by £100m, to £450m on 
Thursday. 

At the beginning of the week 
the authorities were under- 
standably reluctant to cut bill 
dealing rates with the market, 
despite signs of renewed reluc- 
tance by' the discount bouses to 
part with paper. The hopes that 
interest rates will be much lower 
in the near future were soon 
tempered by fears that U.S. rates 
may not fall as quickly as recent 
indication have suggested how- 
ever, and the market tone on 
Friday was much more cautious. 

In Frankfurt call money eased 
slightly to around 9 per cent; 
following the injection of 
DM S.3bn liquidity hy the 
Bundesbank at the start of the 
week, and the announcement of 


DM 4.2bn In assistance on 
Friday by way of another securi- 
ties repurchase agreement 
Banks also made increased use 
of the 9 per cent Lombard 


facility to build up minimum 
reserve requirements, probably 
having held off from borrowing 
under the old 9} per cent special 
Lombard facility. 


WEEKLY CHANGE IN WORLD INTEREST RATES 


LONDON 
Base rates 
7 day Interbank 
3 mth interbank 
Treasury mil Tender 
Band 1 Bills 
Band B BHia 
Band 3 Bills 
3 Mth. Treasury Bills 
1 Mth. Bank Bills 
3 Mth. Bank Bills 
TOKYO 

One month Bills 
Three month Bills 

BRUSSELS 
One month 
Three month 

AMSTERDAM 
One month 
Three month 


May 14 (change 


13 

13ffl-13Sa 
|131 r-13* 
12*033% 
13 Lb 
13 

1Z7 B * 

12* 

13* 

jl260 

'7,21875 

17.15625 


Unch'd 
+ S* 

+■& 

— 0.1157 
Unch'd \ 
Unch'dj 
Unch'd! 

+ * 

+ i 8 


143* 

15 


,8T B 

'87a 


lunch'd 
1+0.06 | 

I 

.Unch'd 1 
>Unch' dj 

h ' 

l+TT 


NEW YORK 
Prime rates 
Federal funds 
5 mth Treasury Bills 
8 Mth. Treasury Bills 
3 Mth. CD 
FRANKFURT 
Lombard 

One Mth, Interbank 
Throe month 
PARIS 

Intervention Rate 
1 Mth. Interbank 
Three month 
MILAN 
One month 
Three month 
DUBLIN 
One month 
Three month 


May 14 (change 


1613 

1418-143* 

12.34 

12.34 

13.45 

e.o 

9.223 

e.125 


Unch'd 

h- 3 ? 
+0.04 
+0.06 
—0.35 


lUnch'd 
lUnch'd 
; +0.025 


16 

16* 

16* 

»* 

'20* 

I 

■ 

!lSr* 

IlSfr 


l Unch'd 

It# 

, + *r 

Unch'd 

‘Unch'd 

i 

'Unch’d 
i Unch'd 


London — band 1 bills mature in up to 14 days, band 2 bWe 15 to 33 days, and 
bend 3 bills 34 to 83 days. Rates quoad represent Bank of England buying or 
selling rates with the money market. In other centres rates am generally deposit 
rates in tha domestic money market, and their (respective changes during tho 
week. “Band 4 12V. 


LONDON MONEY RATES 


• Sterling | 

May 14 ‘Certificate 1 Interbank 
19sa i of deposit I 


bid 146(8 


offer 148;* 


The fixing rates (May 14) are the arith- 
metical means, rounded to the nearest 
one-sixtoonzh, of the bid and offered 
rates for SlOm quoted by the market to 
live reierence banks at 11 em each 
working day. The banks are National 
Westminster Bank, Bank of Tokyo. 
Deutsche Bank. Banque National da 
Peris and Morgan Guaranty Trust. 


Overnight. 

2 days notice.. 

7 days or. ! 

7 days notice... 1 

One month i 

TWO BIOIItlM... 
Throe months.: 

Six months > 

Nine months...) 

One year V 

Two years....... 


- ! 11-14 


13nj 13* 
13*-131* 
13*-13* i 
13rV-12ii 1 
lSiij-lBn; I 
13*.12li ! 


1330-13*0 

13*- ISA 
13r>-13rr 
131,-13* 
13 ia- 13 
131,-13 n 
131g-13 A 


Looal jLooat Autn. 
1 Authority (negotiable 
> deposits | bonds 

Finnnoe 

Haute 

Deposits 

iDinomint 
Com party Market 
Deposits; Deposits 

Treasury 

Bills* 

Eligible 
Bank 
Bills « 

Fine 
Trade 
Bills * 

; 13SB-13SB f - 

— 

134-13981 10-134 

__ 



j 13la-13Ss 1 — 

— 

— j — 

— 


— 

laia-iSto - 


1310-133*! 13 




13 lg 135s-133e 

13Jt 

133g-13Sa 1270-13 

13-13^ 

ISA 

135* 

j - 13ifl-13i* 

134 

134 j 124 

1278-18 i] 

12^12 :-j 

134 

1 13U ! 13IS-13U 

134 

134 1124-1890 

12X 

1 SS 3 

134 

1310 1250.1238 

134 



124 

125* 

1 1330-13 

134 

| M 





1 13U 13i* -15 

134 

— j — 




, . 136a — 

. _ . 


— 




Local authorities and finance houses aavBn days' notice, others seven days fixed. Long-term local authority mortgage 
rates, nominafiy three days 13 7 , per cent; four years 13 7 . percent: five years 13 7 « per cent. 3-Bank bill rates in tablo are 
buying rates for prime paper. Buying rates lor four-month bank bills IVa-ISlSi P« ccnc (our months trade bills 13 1 , per 
cent. 

Approximate selling rates for one month Treasury bills 12 T » per cent: two months 12’* per cent: three months 
12 1 , per cent. Approximate soiling rats for one month bank bHIs 12*\* per cent: two months 12a i> -12 u u ber cent 
and three months 12^ per cent: one month trade bHIs 13 1 * par cent: two months 13U per cent: three months 13 per cent. 

Finance Houses Base Rates (published by ihs Finance Houses Association) 14 per cent from May 1 1962. London 
snd Scottish Clearing Bank Rates for lending 13 par cant. London Clearing Bank Deposit Ratos for sumo a: seven days' 
notice lO-IO 1 * per cent. Treasury Bills: Average tender rates of discount 12.5023 per cent. 

Certificates of Tax Deposit (Series 6) 13, per cent from May 14. Deposits withdrawn lor cash 11 per cent. 


EURO-CURRENCY INTEREST RATES (Market closing Rates) 


May 14 1 

Sterling 

U.S. . Canadian . 
Dollar Dollar - 

Dutoh 

Guilder 

Swiss 

Franc 

D-mark 

French 
| Franc 

Italian 

Lira 

Belgian Franc 
t Conv. Fin. 

•Yen 

Danish 

Krona 

Shortterm.... 

7 days' notice.... 

134-154 
134 15i« 
134-15)* 

1470-131* I 16-17 . 
14 4-1 3 4 16-17 J 
144-16 [ 16-16 4 

■ ra-QrW 
9-94 
ais-a 

14-14 

14-14 

3*-3* 

StSis 

litis 

B4-85R 

i 24-28 
24-26 
344-254 

18 4-204 
204-824 
2270-2470 
234-24 

144-164 
• 164-20 
; 164-18 

164-154 
164-154 S 
147a-15 ( 

64-7 
670-7 
6U.fi r.) 

. 20 5* -31 4 

i 2Q5.-214 

' 204-214 
201* 214 
19)i-194 


134-134 

134-134 

I3rS-13* 

1+4-144 ' 154-1578 
14^-14tv 154-1570 

H3 4 J37a 

224-239* 

16-17 

144-1478 
1450-145* ! 



Sri BHt 

f 22-23 

234-24 

■ 16-164 

7-74 

One Year ■' 

14drl4^ ! 154-1570 ! 

87 S -9 

'Mc^rs 

698-84 

1 194-204 

234-2418 

! 154-18 

l*ri-14* 1 

•H-7TI* 

18-lSAe 


ECU linked deposrts: one month 14\»-1«V per cent; three months 14-14*, per cent: six months 13*»u-14*u P*r cent; one year 13*4-13^ per cent. 

Asian S (closing rates in Singapore); on* month per cent; three months 14*i*-14 a it per cent: six months 14V14^ per cent; one year 141-14*, per 

cent. Long-term Eurodollar two years 14V-14 7 * per cenu three years 14V15 1 , per cent; four years 15-15^ per cent: five years 15-15 1 * per cent: nominal dosing 
raise. Short-term rates ere call for U.S. dollars. Canadian dollars and Japanese yen; other, two days' notice. 

The following rates were quoted for London dollar certificates of deposit: ona month 14.50-14.60 per cent: three months 14J5-J4J5 per cent six months 14.15- 
14.25 per cent: one year 14.00-14.10 per cant. 


THE DOLLAR SPOT AND FORWARD 


CURRENCIES AND GOLD 

Dollar firm 


May 14 


Day's 

spread 


Close 


Ons month 


% Three 
p.n. months 


V. 

p.B, 


Tbe dollar reversed its recent 
decline In the foreign exchange 
markets last week. On Friday 
figures released for the producer 
price index and industrial pro- 
duction were in line with market 
estimates, but there were signs 
of nervousness about the weekly 
money supply figures. It was 
suggested that Ml could increase 
by S4bn, compared with earlier 
estimates of less than S2bn. 

According to Bank of England 
calculations the dollar's trade- 
weighted index rose to 112.S from 
111.7. The U.S. currency improved 
to DM 2.3060 from DM 2.2905 
against the D-mark; to FFr 6.03 
from FFr 5.9775 against the 
French franc; to SwFr 1.9440 
front SwFr 1.8910 in terms of the 
Swiss franc; and to Y235 from 
Y232.S5 against the Japanese yen. 

Sterling's trade-weighted index 
rose to 90.4 from 90.0 as the 
pound improved against major 
Continental currencies and the 
yen, but showed little change 
against the dollar, after a very 
firm trend in the early part of 


GOLD MARKETS 


the week. Sterling touched a peak 
of S1.S460 on Wednesday, but 
finished at $1.8250, a fall of only 
5 points. 

The pound rose to DM 4.21 
from DM 4.1850; to FFr 11.00 
from FFr 10.91; to SwFr 3.55 
from SwFr 3.4550; and to Y429 
from Y425. A relatively quiet 
week in the Falkiands dispute, 
from the military point of view, 
while diplomacy was given a 
further chance to produce results 
kept sterling fairly steady. 

The Danish krone overtook the 
D-mark at the top of the Euro- 
pean Monetary System on 
Monday, but this was shortlived, 
with the D-mark becoming the 
strongest currency again through- 
out the rest of the week. The 
lira remained the weakest 
member of the system, below the 
Belgian franc, which continued 
to suffer from speculative 
pressure. 

Gold rose S3 to S335& after a 
very quiet week. It touched a low 
of 832SJ-329 on Monday and a 
peak of $333J-334 on Wednesday. 


UKt 

Irelandt 

Canada 

Nethlnd. 

Belgium 

Denmark 

W. Gor. 

Portuge/ 

Spain 

Itai/ 

Norway 

Franca 

Sweden 

Japan 

Austria 

Switz. 


0.70-O.nMta 
1.30-1.75 Dm 
0.31-0.34dis 
3.72-3.62 pm 
20-23 dis 

7.75- 8.2Sdis 

3.45- 3.40 pm 
150'525dta - 
BO-95 dis 
28-30 dis 

2.75- 3. 15dls 
12-13*3 dig 
2.70-2.55 pm 

4.46- 4.38 pm 
25 ] 4-22 ! 4 pm 
5.52-5.46 pm 

t UK end Ireland are quoted In U.S. currency. Forward premiums and 
discounts apply to tiis U.S. dollar end not to the individual currency. 


1.8140-1.8280 
1.4340-1.5020 
1.2350-1 .2400 
2.5625-2.5720 
43.55-43.77 
7.8175-7.8425 
Z.3025-Z3T75 
69.75-70.65 
102.70-103.00 
1283-1286 
5.9480-5.9600 
6.0200-6.0425 
5.7690-5.7870 
234.90-237.20 
16.24-16.31 ** 
1.9360-1-3490 


1 .8245-1 .8255 
1.5000-1.6020 
1.2370-1.2375 
2.5645-2.5675 
43.62-43.64 
7.8200-7.8250 
2.3055-22065 
7025-70.60 
10220-102.90 
1Z83V12844 
5.9560-62590 
0.0276-6.0325 
5.7840-5.7970 
234.95-235.05 
1625V1626 1 , 
1.9435-1.9445 


0.27-0. 37c din 
0.66-0.56e pm 

0. 1 2-0-1 5c db 
1.36-1 28c pm 
7-10c dis 

3.15- 3.40ore dis 
127-1 23pl pm 
50- 200c dis 
20-28c die 

a V9 1 * lira dig 
1 .5O-1.90o re dis 
5-5-Vc dis 
1-TO-I.OSom pm 

1. B8-1.60y pm 
lOVS^gro pm 

2.15- 2.07C pm 


—2.10 

429 

-121 

621 

-2.34 

-5.01 

620 

-21.28 

-280 

-8.41 

-3.42 

-10.70 

2.34 

8.37 

7.Z7 

13.02 


-1.64 

428 

-1.05 

5.72 

-1.97 

-4.08 

5.94 

19.15 

-3.40 

-9.04 

-1.93 

-8.48 

1.82 

7.54 

5.83 

1120 


THE POUND SPOT AND FORWARD 


May 14 


Day's 

spread 


Close 


Ons month 


% 

p.s. 


Three 

months 


% 

p.e. 


U.S. 

Canada 

Nethlnd 

Belgium 

Denmark 

Ireland 

W. Gar. 

Portugal 

Spain 

Italy 

Norway 

Franca 

Sweden 

Japan 

Austria 

Switz. 


12140-1.8280 

22440-2.2500 

4.EV4.691J 

7920-7920 

1421-1429 

12110-12210 

4.19-4.22 

12720-129.00 

186.75-187.75 

2333-2348 

10.81-10.88 

10.95-11.02 

10.49-10.55 

427-433 

29.55-29.70 

3224-3.56 


1.8245-12255 
22575-2.2585 
4.67-4.68 
79.55-79.65 
1427-1428 
12150-1.2160 
4.204-4214 
12825-128.85 
187.40-187.60 
2344-2346 


027-0 -37c dis 
0.60-0.7DC dis 
2-14e pm 
25-35cdis 
SV^jOre din 
0.B2-0.7&P die 
1V14pf pm 
110 -395c dis 
60425c dis 
19-22 lira die 


10264-10274 E4-64aredis 
10.994-11.004 10-14c dis 
10 SZ-10.53 s *ore pm-4 db 
4284-4294 2.50-2.15y pm 

29.65-29.70 14\-11gro pm 

3.544-3.554 34-3’ri! pm 


-2.10 0.70-0 20 die -1.64 
-3.45 1,50-1,600 is -2.74 
429 5-44 pm 4.0G 
-4.52 65-75 dio -3.53 
-722 21-224 dis -6.09 
-6.81 1.90-2.08dis -6.55 
4.63 a>j-44 pm 427 
—23.56 325-1 01 5d is -20.84 
-4.64 215-255 dis -5.01 
-10.43 E94-634dis -10.49 
-6.62 114-124dis -4.41 
-13.09 26-30 dis -10.18 
0.21 *»pm-4rib 0.05 
6.50 6.65-6.30 pm 
5.10 34-274 pm 
11.41 84-84 pm 


6.04 

4.14 

9.72 


Belgian rate ia far convertible Francs. Financial Franc 87.75-87.85. 
Six-monin forward dollar 1.2&-125C dis. 12-mon:h 2. CS -2.25c 613. 


FORWARD RATES AGAINST STERLING 


May 14 


May 13 


Gold Bullion (fine ounce) 



Spot 

1 month 

1 *282 
4.1938 

3 month 

1.8325 

4.1650 

6 month 
1.8361 

12 month 
7-8A85 









3.5163 

426.7 




Japansse Yen 

429.0 

42L6 

416.6 

405.4 


Close. ..-~...—...'S3345s-335i = 

Opening _'S55 1 lr-332 U 

Morning fixing -.833 1.75 
Afternoon fixing 5355 J2 5 


(£1834-184 id) B5313i -3321a 
18182 1831;) 8351*9-33210 

l£lBl.S6Cn -9351.75 
l£182.653) 6331 


Gold Coin* 


Krugerrand- 5S47-347t» 

1<2 Krugerrand.. 'SlTBij-lTB 3 * 
1/4 Krvgarrsn d... S91-92 
ItlB Krugerrand S37-3B 

Mapleleaf. 5M6i7-347lj 

New Sovereigns.' SB li« -82 
King Sovereigns. -994-05 

Victoria So vs S9+95 

French 20s S7O4S0 

Bo pesos Mexico 6414W-417 
100 Cor. AUBtria..S329 la-332 
820 Eagles 5430-455 


(£190-1901(11 
(£93-9812) 
i£49 4-501?) 
(£204-204) 
(£1894-190131 
■£4412-451 
i£51i ; .G2) 
i£5Hi- 62> 
(£58i4-43Jjj 
i'£Z27i«-228t;i 
i£18Qi a .182i 
1 £33534-236 Ul 


K34U--3421* 

$176-177 

S891"-0Olfl 

'$3612-371; 

S341-342 

SS0U-B04 

894)2-9513 

.594)2.9512 

868-78 

*4061; -409 

1333-325 1; 

*430-435 


f£1813i-182Ui 

UlBO-VlBUo 

1*180.0231 

(£181.023j 


(£18? .*-187 1* 
(£961p 97i 
(£49-49)7/ 
(£20-3012) 
(£187 187 ly) 
i£44-44 >«> 
(£31S*.52U> 
(£514-52 Ul 
(£371*42**1 

(£222 Si -224 1 4) 

|£177.178)}| 
C£235)«-33a is) 


EMS EUROPEAN CURRENCY UNIT RATES 



ECU 

central 

rates 

Currency 
e mounts 
against ECU 
May 14 

% change 
from 
central 
rata 

% change 
ediusted for 
dnnugonce 

Divergence 
limit % 

Belgian Franc ... 

44.6363 

45.0820 

+0.86 

+1.05 

±1.5440 

Danish Krone ... 

8,18382 

8.08385 

— 1.22 

-1.03 

±1.6428 

German D-Mark 

2.41815 

2.38579 

-1.34 

-1.15 

=£1.1887 

French Franc 

B.19S64 

6.22647 

+0.50 

+0.69 

±1J743 

Dutch Guilder ... 

2-67296 

2.65082 

-0.83 

-0.64 

-*-1.5003 

Irish Punt — . 

0.636733 

0.6897Z3 

+0.43 

+0,62 

%1.6689 

Italian Lira ...... 

1305.13 

1324 JO 

+1.51 

+1.51 

^4.1242 


Changes are for ECU. therefore positive change denotes a 
wreak currency. Adjustment calculated by Financial Timo3, 
For Steriing/ECU rate see CURRENCY BATES table. 


OTHER CURRENCIES 


CURRENCY MOVEMENTS CURRENCY RATES 


May 14 


1 Note Rate* 


M«14 


Bank of • Morgan 
England' Guaranty 


Belgium ___ 
Denmark. 

4.5010 4.3030 France 

62.50-63.70 
5.7390 5.7640 I 
80.50- 1 


Argentina Peso-. 2 3. 6 52 -25,892 r 14. IOO-14.1SOT 1 Austria. 
Auetralle Dollar-. 1.7180 1.7200 0.9415 0.9420 
Brazil cruzeiro.... 286.60 287.60 157.57-158.36 
Finland Markka-; 8.196-8.315 
Creek Drachma..! 1 12.DGB-1T5.4BS 
Hong Kong Dollar 10.49-10.501= ■ 5.7390 S. 1 7640 j Italy 

Iran Rra] 14B.20' 80.50* 'japan 

KuwsltDfnar/KK.0.52W5-0.53145' 0.38500 J859 - Netherlands. 

Luxembourg Fr .. I 79.55 79.65 ! 45.62-43.64 ■ Norway — „ 

Malaysia Dollar...; 4. 183 5-4. 1935' 3.2975 2.5005 1 Portugal 

New Zealand Dir- 2.3615 -2.3655 1,2940-1.3950 ■ Spain — 

Saudi Arab. RlyaV 6.2475-6.2375 '3.4300-3.4315 , Sweden- — _ 

Singapore Dollar.' 3.8060-3.0150 2,0500-2,0930 . Switzerland 
Sth. African Randj 1.9370-1.9400 ; 1.0615-1 J3630 , United States^. 
UJLE. Dirham 5.6865-6.6986 1 5.67104.6730 ; Yugoslavia^.... 


2B.5a 3 930 
87.50^8.50 


Index 

Chang asL 

Sterling > 

90.4 

> -52.9 

: 14.18-14.32 

112.8 

! +6.1 

10.93-11.03 

Oanadlart dollar.... 

86,6 

-1B.3 

1 4,194,23 


118.7 

: +26.7 

2305-2355 

Belgian franc. 

90.8 

. -1.6 

430 43S 

Danish kroner 

84.8 

' -12.5 

4.654.70 

Deutsche mark..... 

Z2C.2 

+48.7 

10.81-10.91 

Swiss frknc 

148.0 

! 

1 135131 

Guilder — 

115,6 

! +21.8 

: 180-159U 

French franc 

79.8 

! -14^ 

1 10.48-10.58 


54 JJ 

i -58.4 

) 3,92 >*-3.58 


138.2 

1 +35.1 

1 1.BQV 1.821* 

I an 2 -97 

Based on trade weighted changes from 

Washington agreement December. 1871. 


' Bank; Special 'European 
May 14 rate .Drawing -Currency 
. « ( Rights Units 


Sterling.-... — ,0.623715 0.567489 

U.S. S .12 ’ 1.13485 1.03045 

Canadian 5..il5.41 
Austria Seh. 6k- 18.4590 
Belgian F.,_. aa ,49.5589 

Danish Kr.-. 1 11 ,8.87566 

D mark.—- 7)3 2.62037 

Guilder. fi n.a 

French Fr.... - 9 is 6.84768 


Ura- ' 19 ,1457.15 


Yen. 

Norwgn. kr.; 
Spanish pts.' 
Swedish Kr. - 
Swiss Fr-. 


5l3.267.95B 
S ! 6.75690 
B : 116.614 
10 ! 6.54695 


1,27724 
; 15.7911 
1 45.0820 
' 8.06366 
■ 2.36579 

1 2.65082 
6.25647 
: 1324.90 
244.010 
6.13786 
1 105.981 
5.96217 


t Now one rate. * Selling rate. 


EXCHANGE CROSS RATES 


Bank of England Index (base average 
1975-100). 


. .. Big' 3 20615 i 2.00432 
Greek Dr'ch. SOij 71.4218 64,8512 

■CS/SDR rats Idt May 13: 1.41141. 


May ** ' Pound Sfrilnfl) U,S. Dollar | DeirtsChdm'ki Jacan'sa Ven; French Franc Swiss Franc Dutch GuUd'l Italian Lira Gonadia Oollmrficlglsn Franc 


Pound Sterling i 

1 

1.825 1 

| 4 .21Q 

1 429.0 | 

11.00 ! 

3.550 

4.675 ! 

2345. f 

2.258 

1 73.60 

U.S. Dollar ; 

0.548 

1- ! 

! 2307 

235.1 ! 

6.027 I 

1,945 ! 

3.563 ; 

1285. 

1.Z37 

45.62 

Deutshomark 

0.23B 

0.433 


• loi.g 1 

2.613 , 

0.843 

1.110 

557.0 ; 

0.S36 

18.91 

Japanese Yen 1.000 . 

8.331 J 

' 4.254 

' 8^14 

1000. [ 

25,64 ‘ 

8.275 

1Q.B0 

6466. 1 

6.Z63 

185.5 


0.909 1 

1.659 | 

3,837 

390.0 1 

10. 

3.227 

4J60 

2152. 

2.055 

72.36 

Swiss Franc 

0.283 j 

0.614 

1,186 

t 120 J 1 

3J39B 

1. 

1.317 ! 

660.6 

0.636 

22.42 


0.214 

0.290 i 

0.901 

> 91.76 < 

2.353 f 

0.759 

2. 1 

501.6 

0.483 

17.05 

Italian Lira 1,000 ; 

0.426 \ 

0.778 j 

1.795 

j 192.9 < 

4.691 1 

1.514 

1.994 1 

1000. 

0.965 ' 

33.94 


0.443 

0.B08 ; 

1.884 

! 190.0 1 

4.872 

1.572 

2.070 

1039. ; 


35.23 

Beifl (in Franc 100 

1.256 

2.293 l 

8^89 

1 038.9 

12.82 1 

4.460 

0.875 

2946. 


100. 


Financial Times Monday-Majr 17.1982. 


UNIT TRUST INFORMATION 


-«l> 


.PjC- 


Abbey IMt TsL fibg r% fr) 

72-80, (Mebrnw RL Ayfsbvy 0296 5941 
AmriraGNM-JiM 



AUTHORISED TRUSTS 


RMgcTffM Hbaagamof. Ltd. 

1 Fn«bwy5c, EC2A 1PD 


01-5B8690A 


Crescent Unit T«- Wngr*. Ltd. (aXs) L * C IWf That Ma nj jggneot LW, 
4MeMlleCres,E(S<tenh3 031.2263492 The Stock exchange, London EC2N 1HA 082 W? 

■«)--( || tsias&TEjfii ?s 


Fn J Uw Pro g. — , , 

Alton Kanrey & Ross Unit Tst MngreL 
45, Csmhifl, Uadea EC3V3PB. 01-6236314. 
AHRCfitTnut |9U %J*4 ™.J 12-57 

AIM Htonbro Ud. (a) (g) 

Hantno 


}S SSSSfcr”' 

Cm. International — 

Cm. Rrserves, 

Cm-TOgo 137.4 



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Partington IMt Trart lingt Ltd. 
Oantagrai. Totres. I*von TQ9 faJE. 0SQ3862Z71 
Tool Peri- Unit TslPZA Z5Jd 5J5 


J-™ LegM & General (IWt TsL, LW^ 

flS 5 Rs>W8(t»L Brentwood - 0B772177X 

EvrttyDh 1993 387. 

in 4 *- 



DtereUorarj IMt had Managers LeoDfaWbubon 
36/38 New Bread a EC2M1NU. 016384485 
Dbc.lpe.MWl4— EMUS 298.WI+34 437 

Dantar Unit Tfcst Ma n ager s Ltd. 

E. F. Wfi uUmta r Fend Mngt Ltd 
44.BtomnlwrSi)pere RCXA2RA 81629880 

§|rd ES 

Equity & U« On. TV. NL (a](b) (c) 

Amentm BO. HMi Wyenriie. 

OK Gutfh. Tst. Acc__' " 

UKGwth.Ttf.lnc.— 


Lewfint Ad m h ihU atkm Ltd. 

Z. sl M»y Am, B3AMP-, 


01-623 6rt4. 


RottricbBd Asset 
72-80, Gmbeox fid, Aytebry. 

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(a) fg) to 
02% 5941 



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(toft Trust fltogt (a) 

Cbgr Gate Hss, Fhatw Sq, EC2. 


IWUlSCiy 

Met. Kn SCdtr. 
Overseas EwnlngSi 

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Sg?<S“K™._ 

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01-606 1066 
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FMeHty Interna ti onal Ma na gemert Ltd 
20, AtxtiMCh lane, London EC4N 7AL. 2B3W11 


Usytfs Life IMt TsL Mngn. Ltd 
2. Si- May Axe, EC3A 8SF- 016236114 

Equity Acorn (2) — 12997 31531 .--4 . 175 


High Me. 

Royal lira Fd. 

New Hufl Place, Uvetpod L69 3HS 051-2274422 

K&ss=|$S filed = 

RcksJ TsL Baa. Fd Mgn. Ltd 
48-Sd Casea SI, Londne EOUt 6LD 01-236 60«4 

Sam A Prosper Greg 

4, Great SL Helen, Leaden EC3P 3EP 




Aroericm 

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Anderson IMt Trust Mwigm IM. 

62,LcndRiVtt£, EC2R7DQ 01638DW) Growth & Income , 

Anderson U.T— I68J2 73.91 „_.J 3-34 japn TretfU) — 

Ambadaer IMt Mgn*. Co. Ud. SSdSlSl sL "" 1 

LNebleStv ECZV74A. 01-7264931 

Inc. Monttri* Fund Qf&B 175.0] ..... [ TOM Jams Finlay Unit The* RtagL Ltd. 

Lrtcs.fla3wLFd. 6W WJ5| SZt ip-ie, W est Mhe " 

Anthony WMer IMt Tst MffnL^Ud 

11 WMeotfe St, London, El 7HP. a 01-247 BBZ7 . Fulty hu ireow^B/A 

WteJsrGwOi Fd. lnc.JW.7 40iJ J £6 FMtaytetf Ems*y_.BM 

Da team.. KM SZ3 ...J — Acnan. L)rRs_, | 

Arbuthnat Securities Ltd. WM 
37, Queen SL, London, EC4R1BY. 01^2365281 
Capital Growth -C17 


(texumutrtionJ 

CanvotMy 

(Acacndaiian) 

(10%WUtidrai«d1_ 

Extra Iw c omo— 
ftouillla fi on) 


riraor HuunvT — 

Acnan. UnNs 

Pitas Oh M p jS/Not dNflrg 1% 

FremHngtni IMt MgL Ltd. (a) 

64, (jWtxrWaJt ECZM5N0. 026285181 


(Accumutauon)— — 
(8i-%WittKfra»dJ~. J7.B 

"w—rzl SS 



SmiBerton^rotou-lgJ 



(Aocunwlauon) 

Archway IMt TsL Mgs. Ud(aXc) 

317, Hhpi HoOxrv WC1V 7NL. 

Ancwnpr RKtndQcJiiciii 

P ane iageGdig, I te ta m ier 0616342332. n .,,,n r T...rn. urt 

ArinolglKFil Mayll,|lD&6 11241 — .J 385 
Barclays Unlearn UxUaKcKg) 6™**^ jta»6^..m.4 

Unlearn Ha 252. Romford Rd, E7. m.TM S5M High YWd 


Friends Piw. Ihst 

01-8316233 Plihan Eni DnWog. 

668 Friends Pro*. Unite— [721 
rin Acoan., .pneit 

Funds to Ceort* 


Unkwii Ancrica_ 
Oa. AasL Acc 


Da Capital 

Da Exempt TsL.—. 
Da Extra Income — 
Da Financial 

il 

Da Gene»=l 
DaGA&FjTrtlfoe. 
DaGtr- PadffcAcc— 
Da Gtr. Pacific Inc. _ 

Do. Growth Acc. 

Dc. Iixcn*! Trust — 

s 

VWwidflTtf 

114 1 

Da Iccotk- 



E7. 01-5345544 


90jM 

Baring Brothers A Co. lid 
8 BJtfepsgaa EC2N4AE. 

Stranoa Trust, 

Da Acam.._ 

Nat sub. dv fiby 25 (by 




Robert Fraser Trad Mgt Ltd. 

28b Albemarle St, WJ. 01-0933211 

RotX. Fraser IIL TsL 1704 75.fi — | 600 


G.T. IMt Mmgers Lid 
16 Rnsbury Oran, EC2M 7DJ. 

GT.Csp. Incan ' 

Da tex — .... 

G-T.lnc.Fd.Uiu- 
G.T. UJi. & Gen— 

G.T. Mfld- Bd. Fd.., 

is sesjsa 

G.T Inti. Fbnd.__Ur. 

_ G.T. Far East &GmW.L 

i SssSSb 

G. « A. Trust (a) (8) 

5 RoyW# Rod, Brentwood (0277)227300 

G. A A. |4A7 SUMHMI SJ7 

Gartnrere Furnl Managers (aXg) 

2SL Maty Axe, EC3A88P 016236314 

Oeaflng or*; (0623 5K6/50O6 


McAtta^r Find Managemnt Ltd 
Reds Hse, KSngWffKamSL, EC4. 016234951 
Drftrt Inc. TsJ. Ace. -137.7 406 — J SJ2 

Delphi Inc. Tst. lnc._C5,9 JOM -T^J 8.7Z 

GlenFtedAcc ZKUJ 118.3 _J 431 

GtooFtortlac. pS3 a53 —4 431 

Mncap IMt TTOst Mtogrs Ud (rXcX«) 
Unicorn Hse^ 252 Rondtard ftt E7. 01-5345544 
H&l 5L7I+0JJ 629 

Mumiy Fond Managero Ltd 

30,GredtamSt v EC2P2EB. 016004555 

97.71 -62} 



Not sib. dy ^ 3. IMreMy deaDiHL 

Bridge Fund M au age n (aX4 
Regts Hso, King VOTlam St, EB4- 016234951 



_ „ U.3D 

Inti, feemery lnc4- ?i8 
tto-Acot — 





ISL TsL (Acc.)- 

Inti. TsL (OfeU. 

TrusL, pM 

. _SKT3L-._r^ 
5n.C6IRc.Trea.r 


Mm 


Govett (Mm) 

77 London WML ECZ 
Swckholtiers May 7_P 
PgA ccum. UntU. -_.fc 

BritanidaGp. of IMt Thsts Ud. (aKcXg) a - Euro P e * 1 '^-^ 


01-5885620 



MvZL 


-Hia 

Md ta wd Bar* Group 
Unit Trust Mangos Ud 

gsssy^s: ■* “ ffi 

NMaori Oraston ! 

Captel 

Da tex. — 

Cammwflty&Gai.. 

Do. Ac c. 



Sun ASuce Fund Mmamrel LtiL, 
SsnJUbonee Hse, Horsham. 040364141 


Spec. MMLSks... 

UK BJuC Chip 

Mdi tan Raids 
High Inc.. 

Extra Inc 

Inc. & Growth 
Giti 



E Hc veson Bto ira g em a nt Co. Ltd 

59 Gresham Street. EC2P 20S 016064433 

aasius'.^: 

Br’gn. H.Y. May 13... 

-;= (Acorn IWO — ™ 

465 Barrgtn. GMt May 11. 

(Acoon. Units) 

Barrgtiv 5. May 14^1^3 

ESS=® 

GraoUatr. Mm 14, 

(Accum. Uritti___ | 

Ln.j«)ZnES.Mayl2l! 

lAocon. Uidts). 


GUt&Fkd-Irn — 
DO. ACC-..- 

WSL 


mi 

473 


WJ-M 

V 


4 




=W°M«1 497 


Snhs Ufc Pen. TsL Man. Co. UdtolO 


1.95 


Guantan Royal Ex. IMt Mgi Ltd. 

Royal Enhange,EC3P SON 
(aa> GunM Ta — |MU 


World 

Ottntu Abatis 

American GtomUi 1 

Am.SnB®£TG05. 

felgJt— _ 

Japan Pert. TsL i 

fictert Funds 
Cjpoai A cc_.__ 

Comm. & Ind. 

Oometf k 

Gremh 


fa) (b) (c) 
Premier yTAdmln, 5, RqMgb B md , .fr 
Brentirood, Essex. 027721 


Japan and Paciflc — &4 

Do. Acc. HTfe-? 

Norih American,, 

, 

-Priees a May ftW deafioy Hby 2L 

Master FM ATwinpri 1 Ltd 

Master Hse.. Artter Sr, EC4R 93H 01623 1050 

“ “■ fiUfll 

MIA Unit Trrst MxgnmL Ud 

M69I-631 626 CWCueen Street, SWIASJG. (E-Z3WU77 
MLA Units ..[MU 3HJJ 565 


9-12 DbWMde, 
Fhfdlnt 

Fbid Int Act. 1 

IMoes on May 



01-2363841 

if 

liwi 

_ 1117^ . ..J 1230 
Next dashes Jw 


fmces 00 Mqr i Next dufng Jboc Z. 
Target Tit Mugri. Ltd. (a) fg) 


31, Gresham St, E-C7- 


i ire. . 


Dealings 0296 59AL 

' ra ft 


Gold Fond Ace_. 
Fimnctad. 


kk-wfit rtsi. 


SprtH! Msiwi ;:.L5 . 

Atwnc ss ,.te 5.8 

ili. Snc: EflC3F(J...fcj 
Jdateja & L»s-re_. pU 
PeP!c irr*iwX_.„i--'.2 
Ptc/v: Ei :w 1C7.3 

*nw TIP 



$31 Si 

3s 35 

-d3 431 


For Srithti Ufa Offio* m 
Brown SMydey & Co. Ltd. (aXg) 

Hariands Hsa Haraar® HTb, Sx. 044+458144. 

ELS. Units May 11 ' 

Bi. Accum Maw 1L. 

Financial 

GrewtiiAttum. 

Growth Income 
High Income— 

Income 



124 tUC M 

J3i Special SHs 

Z7B Uccum. UMBIm, 

as ss°ssnc 


Mura/ Jitetcne U.T. Ibid ft) 

1«, Hope SUM, Gtssm G22UH. 04MZ1 5521 
Maroy Ameri ca n— 1*67 50.0J .....J 40 

Murray Eirtocan .„.IM3 (U ...J 2.61 

MmwSndrrfoi Fd-jKS 80d 3M 

Dreten (By Fraby. 


atu l.'a-BW . 

rej«eiwj Share— 1^ ^ 


--“,3 


Inc. & Growth l _ . 

(Accun. Units) B. 

High income 7J.4 

Extra Inc. .. bl.fi 

SmaUec Cos. Utv. — p.O 

Pref.i&m 413 

GW Trout 41.6 

Fixed Interest [467 

Seder Foods 

FtencW.. (4W 

Oil & Nat. Res. B7-8 


JB.9J ~OA ... 
mfij 7.46 
653 -+0.7 ate, 
52.74 .... 8-46 

43.9 -KU M.oa 

iHtia 

is 


Mutual Unit Trust Managers (a)(g) 

Broad St. Aw, BtanficMSt, EC2L 0163S39U-2 

Mutual See. Ptus, fei.9 55 5* -0J9 7 M 

Mutual lne.T£ .— ,(7&7 81 74 -0 7.8» 

Mutual Bto-CMp..— 50 3 7. 

Mutual WdiYJflL. „./560 60. 

National Prarident hw. Mngn L 

46 Grac£chu7th5t,EC3P3HH. 

NPlGth.Ua Til— 171.9 3 , 

(Accuta IWlsJ__ pM3 11 

NP t O' Ms Trust 1929 » . 

(Acoim. Units) B233 236 

National Westminster (a) 

16L CheapsUe. EC2V6EU, 

S^l- 


»®asa,iaB ». 


?io»*th._.. |?f0. 

Praf.-jaoaa Kar5 -IT ' 

For Tonw (M. Tran pirase we 
Otstiur Unk Tna 

Trades Union IMt Trtrri Managers 
mv/oo(fSIi«eLE.CZ - 01623 SOU 

TULTKajfd^.., — J653 69.7«g | 5.17 

Traantimtic and Gen. Secs, (c) (y) 
91-94. New London Rd , CMifftford. 0245-51651 




9.J7 

4.31 


Bocknwster Managesnunt Co. Ltd. 
The Stock Exchange. EC2P2JT. 01- 
BoditianiFlMayU,' 

Aoaan. UoMs Mqr 13 1 

CwnldL Stay 12, 

Amk. Units) May 12 . 

MtefoOOFdLMayll 

(Accum UbJ May 4. 

Sit*. Cdi Fd. Mm 14- 
(Acnin. lbs.) Ifey 14„ 

Canada life Unit Trurt Mngn. Ltd 
26 FHqh St, Pottos Bar, Herts. 


Ltd 

.Helens, London EC3P3EP 01-5510094 
ilnti.Gr.lflc.J520 5401 ...J 439 

Samud Unit TsL Mgrx-T to) 


Can. GenOsi — 

Da Gen. Acomi_ 

Da Income DM. _ 

tfe Int Accum. . _ 

Gllt&FHL lnLTn«L|25j 



P. Bar 51122 4S Beech St, EC2P2LX 
40.11 4« (fa) 

*9 g __ - 


CaptH (James) MngL Ltd. 

100, OM Broad 5L, EC2N 18a 

CaprtH- 

incarae.L 

Norlfi American... u __ 

PhchmMvS. Next tiuBag 
Crar, Sebag Unit Trust Mamgmto) 
57(63, Prims SL, Manehefcr 061-265685 
Carr.Setia 9 C*.Fd..|4U 4R£I +aa 2.42 

Carr. SeM Ina Fi ..BE? MW +fli1 7.S 

Cjrroctaa Far East’s- |3W 3.71 -dll L78 

CbarincD Charities N/R Furattt 

15. Maorgaie. Londaa EC2. 036384121 

osaosnd ^ I ::::1 HJS 

Charities Official Invest FumtR 

77 London wmecaioa 

Ineww Aort 30 | 269-72 

Acoon April 30. 



NEL Trust Itaagen Ud (a) (g) 

Mfit o n Court, Ooridna. Sierey. Q306B87766 

Nefctar )7t7 BOJrf — J 5.02 

Mefctar GXt & FJ |53B 1 420 

Nristre- HH^i Inc Oil 463 J &40 

Nehtar lflUnatiSFaLl563 597] -KUl 4jbl 

Northgate Uoft Trust Managers Ud(cXy) 

2Q, Moorgaw, EC2R6A0 016064477 

ffiSru£S!f=K £B 

Norwich Union httturamt Group (b) 

PJL Box 4, Norsdctv NR1 3NS. 0603 22200 

GriM) TsL Fund iSL4 5Slfl HIS 5J5 


TyrabR Mayegets Udto)(b)(e) 
IB, Camnw Bm BrtsmL 0272 731 
®*> CafirsCE2riw.-9h. 031 22S J 
Capitis! — _H73« 


(SlFhanclalTnrt 

WKK: 

(blhflqhYWdTst 

(fa)lnoonw Trust 

(g) Inn Trust — 

In) Nat RtsMmtsTsl J 
wScairlhfTiusL,. 

EiEj&gr'' 

HK Unit Trust m anagers Ud (a) 

3 Frederick's PL, Old Jewry, EC2 01-5884111 

HK Americw Ts 
HK Elba Insaw 

HKF*ElrS4& 

HXGrowtt TSL 
HK Income TSL. 

NKMiW 

HK Private 


ran Ltd toXoX*) _ 
1V7EEL 01-90SB941 , 
37ja*l-Ml «■«' 


udjbffi) 

Nfcan Units Atfenta. Ud (fiX*K ^ 

57-63, Princess 51, Maoeftesire. 061-236361'. J^WtoSpeeT 

PrikanUnKs 1 1360 14634 -LSI 474 


Pearl Trust 

2S%HMi KMwnt 

Peart Growth Fd. 

AcCURiUMtS. 

Pessrl Inc. 

Peart Urtt To. 

Uaun. UtbiL: 




Perpeted Unit Taut Mupad toMz) 
48, Hart St, 


049126068 



EHL4W2 

ti-M Funds 


01-5881815 HK Smatier Co's TsL.! 

,,.J Tfi HKTedsniagyTd, 

ChMbb. Ye«* - IM MM I ««*»«* 01 W 

u,l o£&l£ a ssssffits 1 ' ’■"*** 

I mres fa ni it InteB g iatca Ud (a) 

10 Worship SL. EC2A2A8. 

Md.hKwtoGrmi 

^ . , _ . . - imaiSnuilCtfsFOli£4 

Chouhrton Fond Mimairifn) 

57,-61 Princess SL, Uanchtetr. 061-2365685 K& FMd Manigtrs Ltd toXfi) 

* ' " 4. 

L 


Practical Insert. Co. Ud (yXO 


Mpxyl _ 

^a«anutf-C*h DepoVl 

TSB Unit Trusts (k) (c) (y) 

PO Box 3, Keens Hie, Andover, Huts. 5PM 1PC. 
4 62169. QnArn to 0264 63432.3 . „ 

1 Ain« lean 90 JL 1-9 


Aiatiatanly) 

Far Easucrn 7a. (ti_i 

BWSBCt-, 

BstefeaumsTiLJ 

gfflffiL. 

SiTUBer Co's Trust _ 



44, Bkxnnbiay 54, WG1A ZRA 

BStttSzM' a 

PMrinU life In. Co. Ud 

,EC2. 



| WJKK 





„PL5 


(a6a66» (aiRgzB' 

ProBieT&ioclo*~&14 




pndL Portfolio Mngn. Ud (a) flO.ffl 
“ .EC1N2NH. ta-4059222 


TS85coKati__ 

Oo. Acwm.. (Z3.4 

U&ter Banfc to) 

WarioBSOT«,B*Oaa. tfl2S23SZIl 

(bHHster Grosnh — _)45-9 ■ «4-02| U» 
Uflft Tmt Accotmt A Mgrafc Ltd 


Grouch 

Intw na tta nat ^ — 
wpitootM 

Confedenthm Funds MgL Ud to) 

50. Oeneerv Lone, WC2A lHfc. 01-2420282 

Growth F«d B24 86.71 J 4.44 

Crngnaont IMt Trt. Mgn. Ud 
Buddfriiwy, Undoo EG4N880. 012484964 

fWhimme^, 

NoKiAmmcaa ....... 

CSraduc EretopC' _ 

CuuSan Tnnt_,__.„ 

MdMsuM HU Uc.*~ 

KTCpWTV 

Gutirea , _ 

riNMka dUbg Ay wcMsaj. 


016206626. 


-03 2.90 


MMi ag uram t Co. Ud 

3Ut5Gretfaci Street EC2 - 0l600«77_ 



3/3, UAnMpSLi'EC2A 2A0. 

13 

jEjU 

KMntMrt Benson llatt I to ng cn . ^ 

20.Fen3wrehSt,EC3 - 016238000 (WtoW IMt Mgn. Ud 

K.B.IM11 “ 

K.B.U»ftR_ 

KAFd.lw.TtfS.. 


j J. J17941 MOM -05) 4.77 Ra»s Hse, KhoWi«m5LBMR 5R. 016a 4951 

ariZZlioiS HtovlIUI Fri«llitfi«d__{SL5. 404-.J 4S 


9 waste 


KaSm.Ct«.FB l (WC_ 


Reliance Hut, Tusks* Wefts, w. 

BritUhUfo— P20 


ISIS 


•Priori Nbyintcat tigAg 



NOTES 

Prim are m penee unUu eriwrok* __ 

these oesKmeti S mtti a prefix refer to 0£ 

wfotitfcotereJeftwelirte; 


r-ir- 

I-.- . ■ 


'i-t?;;. 

<■ 

; - 


sill 

4.C0 

200 

323 


Scstttan Amtoabta lav. Megn. Ud 
150 SI ViPCtntSl, Glasgow. 041-4182323 

Eoutty Trust Acaax_pl75 12681 -0J| 5J0 
Scottish EqnHaMe Fond Mgrs. 'Ud 
28 SL Andrews Sq. Edinburgh 031-5569101 

18 

Scottish WUen' Food M a t ag aatent 
P.O.Box 902. Efflabergh EHlfi 5311 031-6556000 
Pesasis TsL May 14 .pfi27 UO.'S +CJJ — 

SUfiCB Maney Funds 
66, Canren Street EC4N6AE 00-236 MC5 
SIKCObd Finite ~ 

, 

Sli*C0S.W.(7qyff-M# « J^-! 1406 

^ Deposit Fm 

Stewart Ifotf TsL Mm— ert Utf.(a) 
4tCtoMklq,EMuilu 091-226 3Z7I 

IJL JDlti — J JZJ7 






■fa- 


419 •toato!; 


sss? 

tii 1 : 


& 




Britos. VWtir%(s6Btssl , 

bwkw wwnia*. * Offered pie*s Nkfodetf 1 

«pe»»L » todafs pnaet p -fieti SgetiaHtifte 

prenkn bsnrecce pilwL- ■ So* p reUMP 
«rare»ce. r offered price fadutire ag ri ^yf 

£4rtJfep/afi9S: 

ft Wr vwMtiew cMriM* 


¥fj S 

:i v l |. 

si* 'P' 

a: i 


,/» 

5 



»- 1- 



»nei 

^ •" 
I -• 



















































































.f 0 R-GU Api.TY-.D EVEUO PM. ENTS 
- 1 N^^E^MJptAN D;mD 


BRITISH FUNDS 


Mar. Auo. 


Pria las] rw 
£ ri I toL ! fe± 


“Shorts” (Lives up to Five Years) 

HMtTMmMRUDc I 99AI 113 831 1 13.63 



Yst~W'* < 


FOREIGN BONDS & RAILS 


Pike | Let I Ob % I RBL 
£ I d I baa I VHd 

0333 ,Aug * te 
03.70 

® U | May No*. 


Five to Fifteen Years 


25Ap 250a 
15J* 15Ja. 


21M- aft. 

25Fb. 25Aag. 
27Mar. Z2S 


305 31M 


Feb. Sept 


April Oct 



BEERS, WINES AND 


Enfetter 13<cc 
Rc**iwksi3pc1 


MrJtS-O 

MrJn.SH 

MyJfe.N.F: 

WyAi.N.F. 

MyAuN.F. 

F.MyJte.14 

BteJtL5e.De. 





CVr b>s 

Eg 

- 17 

- 4 .T 

- H 

- 9-5 

- 83 

- ff Feb. 

- (u »_ 

~ M Jn 

- *7 Aitfi | 

- H S U 

- 6| Aug. Feb. 

- J3 St JWr 

- 49 QcL • Aug. 
“ 7-_ Aug. Fed 

- ja3p.No*. 

- £0 oa 

- Jree Jan. 

- May Aug. 

- to Ar. 

- hi M. 

- ,S-2 Jar. S**K 

- 10 9 Jan. June 

- T. Ok. Jut 

:IS“ K 

- 4.0 


SPIRITS 





Aw. Act 


May Mr 



- | May No*. 


Oct tor 


May No* 
Mar Nor 
Sent Apr. 


Fin. Cant America.) 846o 
FVa Chicago S5. 

Fhor Corp. JSq— 

Ford Motor SZ__ 


Honeywell SL50. 
Hatton (E F.) SI. 


lAfl. 3 Oct 


reasury^2pc 

Index-Linked & Variable Rate 

150 ISJurfTreas. Variate ’83S^. KB, 1 - 105j -j 13.74 

&N.2* toy Do. Variable '8 jH— 2 OT&sl 29.4 24J8 23.C2 

Sept M»ch Da. Zpc I.L as 9/ia - Zto 2.44 

16 Mar. 16 SL Da 2fic I.L ‘96. 98»j 62 234 247 

19 Ja 19 Jul Do.2pc I.L’Gb. 93i 2 1« 239 281 

— Do.2tsxl.L3tm.... 95^2 -] 265 279 

INT. BANK AND O’SEAS 
GOVT. STERLING ISSUES 

9Siil 141 M.SBI 14.90 


63 
4 2 

— June No*. 

^ Jan. July 

U 

J 4 May No*. 

7 Feb. Aug. 

£8 Feb. Aug. 

h £ 

3 

SB & 

8-9 Aug. Oct 

60 oa. B^r 

H Oct May 

9| May Dec. 

45 May Nw. 

6.4 Jan. Jriy 

55j Dec May 

45 Aug. Jan. 

4.8 oa. A 

93 Jan- July 

Jan. July 
H May Dec. 

4.9 A*. Oct 

65 May Oct 

J3 May Oct 

|3 JAy Oct 

51 July Oa 

93 Sept Apr, 

■Bft « 




Lmwand Drapery. 
MF1 ftrttif* lflp 
Marks & Spencer 
Martin News_.. 
Menzies 




INDUSTRIALS (Miscel.) 


urciMiXii; 




♦ 

ntn 

llo ) Feb. Aug. 


Oa Apr. 
June Dec. 









15F. 15 Ag. 
15M UN 




Herts b^pc l^B3-c7 


15N 15M 

ItaJU-O. 




15 1| 12.63 
153:2332 




RtoAKvm 

Rwal Bk. Can. $1 




flIU Oct Aprs 
1.9 £ T! 
9-7 Apr. ^ Oct 

69 No*. May 
73 ia. 0. .My 
60 May. Decj 
81 May Dec 
9-| Jav. May 
35 M,. S«L 
Jan. Jdy 
Apr. Oa 
Hat 

July Feb. 
July oa 




Jan. Jme 
Jan. Aug. 
Dec. Jure 
Mr. SeptJ 
April to 
Nor. May 
Apr. Oa 
Aprt Sept 


Public Board and Ind 

Agrtc. ML 5pc *59-09 [ 6IM 113 837 1433 
Met Wftr. 3pc ‘B’ — 29t»l 131IW6 3297 

U.S.M.C. 9pc 19S2— I 113 3U| 759 — 
Do. without Warms-) 100U13U3 930 — 


JUy 
July 

June Oa La mg Uobn) 
Jan. Aug. 

Jan. July 
Feb. Dec 
June Dec 
Mr. June 
Jan. July 


Apr. NmrJlowinY.J.1 




July 

May No*. 

FEfa. Aug. 

to Apr. 

Ju*, J * 

Jsi. July 

oa 

May No* 
May No* 
May. No* 
F. Apr. 

S 



Apr. Sept 





May Oa 



(981 
60 
&0 

“|l*g Nov. 


ELECTRICALS 

B. Electronic.! 165 | 294+LO J 2j 3.51 (HD 
ItSKBreSp.) 140 |-|M.75]2j| 



10.0 

— ,128 
153 LO 
S3 b5 I 4> 
ua 8133 i 
®57| 2 
45 
40 
tl32 







rofilg Serviced 
^SISIST" ’ 


4 . Mar. Sep. 

No*. >*w 
7% fitey to 

±1 Mar. Oct 

** Feb. Aug. 

Feb. Sept 
Oa Feb. 

Apr. No*. 

3 a I to Apr. 

ffl Mm May 

31 1 July Sea 

“1 Jaa July 

Jote 

Aug. FA 
FA to 
Jun. tRc 
jure Dec 

May MU ay Rape IndS. 10p 



94 
33 

167 19 
°S T? 

152 a 

88 19 

168 3 

158 29_3 64 
U2 IS 6 J> 






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. RA12 HP' 



22 86 69 
OS 122 >J7S! 

23 1U 1441 

26 ?0i5 S' 
34 30135 

43 41 63 
41 65 41 
6.9 3.6 42 
85 2J3 7.5 
sU 33 72 


CHEMICALS, PLASTICS 


£ & 
iS ! 

to Apr. 

May Hor. 

Jan. 

Feb. 

Mar. 

Mar. 

Feb mtv 

J®- 

J3L JuM 
Sept Jure 
Jan. June 

April 

FeC to 
J®. Julr 
Mj? No*. 
Aug. Fefc 



tl L§2?4 
29 23jU5 
33 53 75 

tiSb 

15 7.5118 


141- , -. 
33 « 


15 5.9 au 

*5-3- 

?2 53 5.0 
* 5^ * 

9a& 
IS 123'94) 


h5.91 d 6-217.7 

30.8)100 ig 4SiJlL' 

.19412 65 3ffi 6d 70 

iiy 75 23j 4.2)14.9 1 




?l H » 


#iis. a 

rrT* 1 *“9- 









__ | Aug. to 

75 
mi 71 

“l Jidy Jan. 

^0 
146 
195) 




to TorMik F. H. 5p 
kyq.|Tripte* ^**4 . 

Danube fnwss.61 

1S8M 
260 

& 

84 
166 
150 
153 
73 
72 
15 

10 14 01 

56 193155 

54 -j 25 

£ ,^335 

109 
98 
61 2 
34 
75 
ZL 
22 

50p— | 355 17J3&15 


FOOD. GROCERIES, ETC. 



138 
9.1 - 
10.6 70 
73 015 
* 4 09 
Tt&W 
3L4 





JiA* Jan. 


FobdlntlCb 


Fee Aug.|Antbri. S'dyde.. 1 140 


Jan. 

Jafy Dec 
Dec 
Ml 
May 
May 
Oa.May 
Air. I 
Nov. . 

May 
Ju^r 
Aug. 

July to 
Dec Aug. 
Feb. Aog 
Janjav 

♦148 i 2.81 4li 98 i Jan. July 


2\ Dec Ji*r 


213 

62 1 ju}, pec 





to. Apr 



J*y No* 



jufy t*n 
Decenbee 


Ingau I neb. 1 Q 0 















































































































































































(Meat Otherwise Unseated, prices and net diuideiKb are in pence and 
denondflatisas are 25p. Estimated prSeetoriugs ratios and cooemaw 
based on latest ana* reports and attaints «d, possible, we 
ivdaled oa tiatf-yearfy ffcres. P/Es are catafeted on “n«" 
dhtriftuttai basis. earrtngspw stare being conpuwd on pw WMtw 
taxation and unrelieved ACT whew applicate; bracketed Homs 
indicate 10 per cent or more difference If cakotated on •*nir 
■ fcWi i H M. Covers « based on “maximonr rfistributiae tUs 
conpares gras dhidend costs to prom after taxation, exdudtag 
es c a m owl profitsfloag hot farfudfog esUnated extent (doftembte 

ACT: Yields are basTO on irickfc prices, are grass, ad lusted to ACT cf 

30 percent and allow tv Mine of dedared rBstributteo and rights. 

• TajT SM* 

• Hlahs and Lows marked thus tewe been adjusted to aitoa for rights 
tames for cash. 

t Interim since Increased or resulted. 

± Interim since reduced, passed or deferred. 

Tax-free to nonresidents on appBc aHnn . 

Q Flpjres or report awaited. 

• USM; n« feted t» Stack Exriwnge and coomany not HijJected W 
same degree of regulation as Bsted securities. 

JT Dealt In under Rote 1630). 
tt Price at time of suswtsten. 

1 Instated dhMend after peodng scrip and/or ritfds bm: raw 
relates to prevku dividend or forecast. 

+ Merger bid or reor ga nisa ti on in progress. 

4 Not comparatate. 

r Suite teterim: radioed find and/or reduced eavnbws Inflated. 
Forecast addend; caver on earnings updated by latest Interim 

1 Cover aiows fir conversion of stares not now ranking for dvfdends 
or nddog only for restricted dhideod. 
i Cover does not attw for shares which may also rank for dividend at 
a future date. No P/E ratio usuafly provided, 
i g Mo par tfw 

K Yield based cnasaureptlonTraasuy KB Rate stays twdiangad until 
mahrttyof stuck, a Tax free, b Figures based on prospectus or other 
official estimate- e Certs, d DMdend rate paid or oqobte on part of 
capital, caver based oo dividend on foU capital, a tedemptkxi yteld. 
I Flat yield. g Assured iSrideod and yWd- h Assumed dividend and 
yteld after scrip issue. J Payment tan capital sauces. Ir Kenya, 
m Interim higher dsn prevMos toed, n Rights Issue pen di ng. 
q Earnings based an pndtataary figures. sDfcridend and ytetdexdudea 
special payment- t Indicated ifishSeret caver relates to previous 
dividend, PIE ratio based oo latest annual earnings, u Forecast 
dhridemfc cover based on previous year's earrings, v T«£reetpte30p 
in the£- x Dividend carer In eoeess of ICO times, y Dhrtdend and yield 
based on merger ten®, z DfrMend and yield lndude a special pqmanfc 
Cover does not apply In special payment. A Net dvidend and yield. 
B Preference t&rfdecd passed or deterred. C Canarian. E Minima 
under price. F Dhhteml end yWd based on orasoec&s or Mher 
official estimates for 1*363-8*. G Assxned cSvidend and yield after 
pending scrip and/or rights Issue. H dividend and yield based on 
prospectus or other official rstimdes for 1*2. K Figures based on 
prcspeche or other efftod estimates (or 1TOVC2- fu EBvfatend and 
yield 1 based on prospectus or other officuJ estimates fcr 1S83. 
N Dividend and rieW based on prospectus or other Official estimate* 
for 3982-83- P Figures hated =n prospectus or ether official estimstss 
for 1*362. Q Gross. T rigwes assumed. 2 Dividend total to (tele. 
Abbrenations: d ex d i vidend; sc ex scrip issue; xr ex rights; a ex 
aU; d ex caplttd distribution. 



































































































































































































































26 



Monday May 17 1982 


. 1 . v . 3 ? t r -• 




Prices pressure on BNOG 


BY RAY ©AFTER, ENERGY EDITOR 


BRITISH National Oil Corpora- 
tion is likely to resist pressure 
for a rise in North Sea oil 
prices next month, though 
traders claim that UK producers 
are selling at a substantial 
discount. 

The BNOC stance comes in 
the face of authoritative reports 
that improved market condi- 
tions have begun to attract 
customer^ back to Nigeria, 
Britain’s chief light-crude 
competitor. 

The Nicosia-based oil 
journal. Middle East Economic 
Survey; said yesterday that 
Nigerian oil output was rising, 
faster than ejected and could’ 
" reach or even surpass " t.3rti 
barrels a d3y this month from 
880,000 b/d in April. 

Oil indnslry experts in 
London beliere Nigeria will 
have reached the 1.3m b/d pro- 
duction ceiling imposed on it 
by the Organisation of Petro- 
leum Exporting Countries 
(Opec) by the time Onec 
ministers meet in Quito, 
Ecuador, this Thursday. 

The free-marfcet spot price of 
individual cargoes from the 
North Sea was said to be $35- 
$35.50 a barrel at the weekend 


compared with the BNOC-led 
contract rate of $31. Independ- 
ent oil companies, which make 
their money producing and sell- 
ing North Sea crude, say there 
is a case for raising the con- 
tract rate by $2 or $3 a barrel 
on June 1. 

But BNOC is unlikely to make 
a move until the end of June 
when the ■ current contract 
period expires. The -state- 
owned corporation which, as 
the bigeest trader of North Sea 
crude is also the price setter, 
has made it plain to the rest 
oF the industry that it will re- 
open negotiations on contracts 
in The present auarter only if 
world nil prices change 
dramatically. 

The view is shared within 
major oil coroorations and the 
Government neither of which Is 
pressing for an early rise in con- 
tract rates. The large, .integra- 
ted companies like British 
Petroleum, Shell and Esso are 
interested in feeding their re- 
fineries with as cheap a crude 
as possible. They say the 
prices of refined products 
would justify a North Sea spot 
price of no mare than $34.10 


40 


i — » umi 


f 


N. Sea Oil 
Prices •— i 

Forties Held 



NAMJJASONDJCMAM 

1981 1982 


or $34.20 a barrel. 

The recent rise in spot prices 
— the rate for the reference 
Arab Light Crude has risen 
from around $28 in March to 
about $34 a barrel-stems from 
the oil market's expectation that 
Opec will maintain its present 
price structure when It meets 
in Quito. 

In spite of the worldwide 
glut of oil, which has ' forced 
Opec members to produce at 
half of their installed capacity, 
pressure from their customers 


they have managed to resist 
to cut their contract rates below 
the present reference level of 
$34- 

The London newsletter, Lou- 
don Oil Reports, says today that 
Saudi Arabia could lower its 
production ceiling from 7m b/d 
to 6.5m. It says Saudi output 
has probably sunk to 6.2m b/d, 
from 6.5m b/d at the beginning 
of the month. 

If, as seems likely, Opec holds 
its reference price of $34 a 
barrel this week, BNOC is al- 
most certain to raise its prices 
on' July 1. It is possible the 
North Sea reference will be 
raised to match the Opec marker 
price. 

It seems unlikely that oil 
prices in general will rise over 
the next few years. A new 
report by Intercommodities, a 
trading member of tbe Interna- 
tional • Petroleum Exchange in 
London, says that the downward 
pressure on crude oil and gas 
oil prices is likely to continue. 
Oil surpluses were expected to 
remain for at least the nest 
few years. 

Calls for oil depletion. Page 5 
Golf minutes break off talks, 
Page 3 ' 


Insurance 

campaign 


By Eric Short 

THE British Insurance Asso- 
ciation has abandoned plans 
for a multi-million pound 
promotional campaign this 
summer because of mounting 
opposition from insurance 
companies. 

The association, which in- 
cludes nearly all of the 
insurance companies, an- 
nounced plans for tbe 
campaign last autumn. It 
was to have been organised in 
conjunction with the life 
Offices Association, which re- 
presents the majority of life 
assurance companies. It was 
to have been based on the 
theme that the public, the 
insurers and their policy- 
holders share common 
interests. 

The BIA appointed Saatcfai 
and Saatchi. Britain's largest 
advertising agency, to master- 
mind the campaign. Saatchf's 
preliminary work has already 
cost the BIA over £50.000. 

It was believed that the 
campaign would have at least 
anti - nationalisation under- 
tones, even if this was not tbe 
central theme. The National 
Executive Committee of the 
Labour Party has considered 
nationalising tbe insurance 
companies, though it has not 
been adopted as party policy. 

From the outset there was 
opposition to the campaign 
spearheaded hy Sun Alliance, 
Eagle Star and the Co-opera- 
tive Insurance Society. 

They argued that there was 
uo immediate political threat 
to the insurance industry, and 
they were not convinced that 
an industry advertising cam- 
paign would be worthwhile. 
They felt that the money in- 
volved — which might have had 
to be raised through a special, 
levy on the companies — could 
he better spent on individual 
company promotions. 

The BIA emphasised at the 
weekend that the project had 
been shelved rather than com- 
pletely discarded. 

The Life Offices Association 
might now run its own cam- 
paign, focusing purely on 
life assurance. There was 
considerable disappointment 
among life companies 
Insurers count cost of winter. 
Page G 


TALKS WITH TUC ON LAW REFORM 


Labour drafts ‘rights Bill’ 


BY JOHN LLOYD, LABOUR EDITOR 


A LABOUR Government ; would 
introduce a far-reaching 
Employment Act, plans for 
which are now being finalised 
in discussions between the party 
and the Trades Union Congress. 

It would guarantee a range of 
rights, including the right to 
strike, mount secondary action 
and picket, extend the closed 
shop, ensure a “rate for the 
job" and help unions to gain 
recognition and to be consulted 
on redundancies, representation 
and other issues. 

The plans also include a 
promise to repeal the Employ- 
ment Act 19S0 and the Employ- 
ment Bill, which has almost 
completed its progress through 
the Commons. 

A proposal, made last week 
in the party’s home pniicv 
committee by Mr Tony Benn 
that unions be reimbursed 
damages paid under present or 
proposed legislation after 
Labour returns to power, is un- 
likely to be incorporated re »he 
plans. It is felt such a nlertye 
assumes that onions will nay 
fines and many have said they 
will not. 

Maior elements in <ho future 
legislation would include: 


• The right to take all kinds 
of industrial action, including 
various forms of secondary 
action and certain kinds of 
strike action now either unlaw- 
ful or about to become so under 
the Employment Bill. Labour 
believes that its legislation 
must curb the courts’ ability to 
restrict such rights in th*» way 
they did during . the 1974-79 
government. 

• The right to obtain a trad** 
union “ rate for the job " 
through arbitration. Employers 
will also be obliged to nay eaual 
waees for eoual work, rather 
than simply the minimum wage 
for a particular job. 

• The right to union recogni- 
tion. where a union is md-ed 
bv the Adrisory CnncilHtinn 
and Arbitration Service to he 
jinormirhte for collective bar- 
gaining purposes. 

• The right to consultation on 
redundancies, to information on 
a large range of issues and to 
represent at ion on works eoun- 
cils and possibly company 
boards. 

• Employment protection would 
be made to cover part-time and 
temporary workers. It wo’ild 
also cover homebound workers 


by deeming them employees of 
the company purchasing their 
work. 

'• The high compensation pay- 
ments presently, or shortly to 
become, available to workers 
sacked for refusing to join a 
union will be abolished, thus 
re-establishing the strength of 
the closed shop. 

These plans, which are likely 
to be discussed at a special 
home policy committee meeting 
on Wednesday, will be the sub- 
ject of further consultation with 
the TUC. The unions have been 
careful to play a low-key role 
in their formation, and will 
probably continue to leave the 
party to make the running with 
them, subject to broad agree- 
ment between tthe two wings of 
the Labour movement. 

Other elements which may be 
part of future Labour employ- 
ment law include the vexed 
question of incomes polio'. Last 
week the party’s national execu- 
tive cemmittoe was unable lo 
agree even on a vague corn- 
week the party’s national com- 
mitment to discuss incomes 

Apex backs economic assess- 
ment, Page 7 


Civil Service check-off row looms 


BY PHILIP BASSETT, LABOUR CORRESPONDENT 


Esso plans 
radical 
change on 
drivers’ pay 

By Brian Groom, Labour Staff 

ESSO is proposing to depart 
radically from many of the most 
entrenched features of • British 
pay and productivity bargaining 
is . a new deal : for- its 1,700 oil 
tanker drivers and distribution 
workers. 

The aim is to cut delivery 
costs and sharpen the -com- 
pany’s competitive edge 
Tt could take Esso out of the 
firing line in the industry's 
normally difficult autumn pay 
negotiations for tanker drivers, 
either by . a shift from its 
November settlement date or 
simply by putting its bargain- 
ing on a different footing from 
that of other companies. 

Esso is the only company, not 
to have reached a recent pro- 
ductivity deal. This makes it 
vulnerable . to strike threats 
because its drivers have fallen 
behind in .thp level of pay end 
conditions.. Tt has now put for- 
wp'ri outline proposals for a 
splf-flnahcing. deal to imorove. 
work njethods. restructure 
wages and . reschedule annual 
pa v talks. ; 

Drivers would he naid .for 
work com Dieted rather than 
time spent a* work, throwire 
i»m tra rational -con rents such as 
shift nremfiims a"* 1 overtime at 
enhanced rates. Whereas pro- 
ductivity deals normally offer 
extra oavrnenfs to regard i rT '- 
nnwod pffieienrv. F-sso wn«ld 

jts nrndHfritdrir reouire. 

robots into the basic pay cal- 

Drivers would wor* r four 
hcric du tv periods * W“°k. V«rr- 
ine f-om • eiyht to il hours 

srrnrdine to workload, w*'h a 
volu"tarw fifth Period. They 
would opera sehod*'1es. pnd h*» 
naid for “schedule hours." rel- 
{•i«l"*ed j»crordi‘ne to improved 

vrot-v a»*nd!<*-ds, specifying the 
tim** inhs r»ke. . 

mho "schedpip hour, rate 
would he much h* a her than 
present basic bay. The consul- 
tative document talks of a new 
minimum earnings guarantee of 
£159.60 a week, for 38 
scheduled hours, compared with 
£113.50 for 40 hoars. “Unsocial 
hours" payments, would replace 
shift pay. . 

No firm pay offer has been 
put and the increase would 
depend on how many workers 
are shed. Esso wants to lose 
nealy 200. 

A driver on typical total earn- 
ings of under £180.00 weekly 
could receive another £30.00 
overall. His pensionable pay 
would be sharnly higher, and 
has'»c and actual working hours 
would be cut. 

The Transport and General 
. Workers’ Union has already 
! shown interest in the deal, but 
• Esso will need to tread care- 
: fully— it's employees have re- 
\ fused three productivity deals 
! in two years. 

Background, Page 7 


CIVIL SERVICE union leaders 
have agreed to negotiate a 
government measure which 
would restrict the unions' 
ability to mount a reneat of last 
year’s selective strike over my. 

The agreement is bound to 
anrer militants in the union 
including the Civil and Public 
Services Association and Inland 
Revenue Staff Association who 
scored a number of important 
victories at annual union con- 
ferences last week. 

The agreement opens the 
door to negotiations on govern- 
ment powers to halt union 
rheck-off facilities during official 
industrial action. Check-off 
involves automatic deduction of 
union subscriptions from mem- 
bers' pay. 

Militants' anger will be even 
stronger because leaders agreed 
to negotiate check-off facilities 


in return for a wider agree- 
ment on time-off for trade 
union duties. 

Many militants already find 
•the : time-off agreement inade- 
quate. At a conference last 
week, a motion introduced hy 
left winsere »n the largest 
union, the CPE A. was p->s«~d 
reiertins the timp-off or far' li- 
no! know about the Governm***'*. 
proposal for endip" tbe che'-V- 
Ijps agreement. Members did 
off facility. 

Left wingers argue that if fhe 
check-off system was halted 
during official industrial action, 
union incomes would be affected 
and it would be difficult to main- 
tain full strike pay. 

Details of the Government’s 
position are given in a confid- 
ential Treasury lei ter. accom- 
panying the new facilities agree- 
ment. The letter is signed by 


Mr Colin Alien, of the Treasury 
Industrial Relations Depart- 
ment. It is dated April 29. the 
day before the new facilities 
agreement came into force. 

The letter followed meetings 
between unren leaders and Sir 
Douglas Was?. Treasury Per- 
manent Secretary and Joint 
Head nr the Home Civil Ser- 
vice, at which the outline of 
the proposals was agreed. Ir 
states: " I explained when we 
met that the Government 
wanted il to be clearly under- 
stood that there could be no 
obligation to collect money on 
behalf of the unions when it 
was being used to finance indus- 
trial action." 

While the union's disagree- 
ment with Ibis is acknowledged, 
the letter says the union agreed 
that fresh discussions would 
take place 



Continued from Page 1 

Task force 

judgment on the issue of 

sovereignty. 

The Government evidently 
fears that it may be induced 
to make further concessions, 
incurring the wrath of its back- 
benchers, only to find commit- 
ments entered by Argentine 
negotiators disavowed in Buenos 
-Vires. 

The Prime Minister and her 
inner cabinet — Mr Nott, Mr 
Francis Pym. the Foreign Secre- 
tary, Mr William Whitelaw. 
the Home Secretary and Mr 
Cecil Parkinson, chairman of the 


Conservative Party — revi ewed 
the options with the Attorney 
General, Sir Michael Havers, Sir 
Anthony Parsons, Sir Nicholas 
Henderson, Britain’s Ambassa- 
dor to the U.S., and the defence 
chiefs for more than five hours 
at Chequers yesterday. 

It was not clear whether the 
two ambassadors had been given 
more room for mancouvre in the 
resumed negotiations. 

The inner Cabinet will meet 
later today and a meeting of 
ihe full Cabinet is planned for 
tomorrow. 


Continued from Page 1 

Invasion 

muni cations: These the task 
force will seek to destroy. 

Mr Nott said yesterday that 
while the UN talks were still 
alive time was not on the side 
of negotiations. There were still 
several military options open to 
rhe Government.- he said in a 
BBC radio interview, and he 
indicated that the task force 
was now in final positions for 
whichever option should be 
chosen- 

It is believed, though not con- 
firmed. that the assault-ships 


UR TODAY ’ 

’ MOSTLY dry and sunny, 
i Rain spreading into western 
! areas. 

i S. E, NW England, Midlands. 

W. NW Scotland, Central 
Highlands, N Ireland, 

Isle or Man 

Dry. sunny Intervals. Showers 
laier. heavy in places. Max 
■20C <6SF). 

SW England, Wales, Channel 
Islands, Shetland 
Rain dying out Sunny 
periods with showers later. 
Max 17C (63F). 

N. NE England, E NE Scotland, 
Orkney 

Dry, sunny periods after early 
mist and fog. Max 18C (64F). 
Outlook: Some rain or showers. 
Sunny intervals. 


Fearless and Intrepid and Ihe 
troop-carrying liner Canberra 
are now with Ihe task force. 

Mr Nott said that if there 
were an invasion casualties 
would be inevitable but the 
Government would not choose 
a particular military nption “if 
we were not sure we would 
succeed." 

He repealed that the Govern- 
ment had no plans at present 
to bomb the Argentine main- 
land. That would be a ’• major 
escalation **. of conflict. 


EEC divided over sanctions on Argentina 


BY JOHN WYLES IN LUXEMBOURG 


BRITAIN LAST night ran into 
difficulties in trying to secure 
the agreement of other EEC 
Governments to renew for 
another month the Community 
ban on imports from Argentina. 

Talks ended without agree- 
ment and will be resumed 
today. 

At a special meeting 1 of 
Foreign Ministers here, Italy. 
Ireland and Denmark each 
raised quite different obstacles 
to continued implementation of 
the Import ban. In addition, 


several governments, including 
West Germany and France 
pressed for a renewal of The 
sanctions, which expire today, 
for only a week or two rather 
than the one month period pro- 
posed by the European Com- 
mission. 

British representatives 
appeared dismayed at these 
developments, which emerged at 
a meeting on Saturday of senior 
officials from the ten foreign 
offices. However, they stressed 
last night that no member 
State at the meeting had 
opposed renewing the sanctions. 


Yet renewal for less than a 
month would apparently not be 
seen by Britain as sending ■* the 
right message to Buenos Aires ” 
now that UN mediation is at 
such a critical stage. 

West Germany wants, on the 
contrary, to send a message to 
London, stressing the import- 
ance of a diplomatic rather than 
a military solution. This is why 
Bonn favours an extension of 
only a fortnight. 

However. German officials 
deny that there is any question- 
mark over their support for the 
UK and point to Saturday's de- 


claration of solidarity from 
Chancellor Schmidt. • 

The Italian Governments 
problem stems from the wide- 
spread hostility to continued 
sanctions evident in the Italian 
Parliament, particularly from 
the Socialist Part*. 

Nevertheless. Mr Francis 
Pym. the Foreign Secretary, was 
hopeful of a satisfactory agree- 
ment largely, it is thought, 
because the Italians, the Danes 
and the Irish are expected to 
succumb to strong pressure to 
fall into line. 


WORLDWIDE 


Vday 
midday 
*C •? 
A|DCClo F 21 70 
Aimers C 25 77 
Afntdrn. C 21 70 
Athons C IS 59 
Bahrain S 31 88 

Ba reins. C . 20 68 
Beirut S 28 82 
C 

s 

5 
C 
F 
F 


Ballast 

BtHnrd, 

B«rim 

SiamR 

BmijUm. 

Rlnckpl. 

Bqi>Ix. 

Rhulqn. 

Bristol 


15 59 
22 72 
24 75 

16 61 
18 64 
16 61 

C .T! 7? 
C 16 81 
C 17 r» 


34 98 
15 59 


Brussels F 22 -72 
B’jdDst. — — 
Cairn C 
Cardiff C 
CnVb'ca C 19 68 
Capa T. s 21 70 

Chicg.t — — 
Cologne F 27 81 
Cpnhgn. S 18 64 
Corfu F M A 
Qonvorf — — 
Dublin C 14 57 
Dhnrnk.- 5 22 72 
Ednbgh. C 15 52 
Faro C 21 70 
Florence S 24 75 
Frankh. F 
C 

c 
s 
c 

3 


Funchal 

Geneva 

Gibfllr. 

Gl'as'w 

G'rnscy 


L Artfl.t 
Lunmbg. C 
Luxor S 
Madrid 
MaioKa 
Malnoa 
Mafia 
M'chstr 
Melbne. 
Mx. C t 
Miami! 

Milan 
Manrrl.f C 
Mnxrcw C 
Munirh . S 
N.-imhi . 
Naples S 
Nassau 
Nwcssl. 

N Vorkf 
lNl«T 
Nicosia 
Oporto 
Oslo 
Pari* 

Perth ■ 
Prague 
Rvkjvk’. 
Rhodes 
RiO J'0t 
Roms- S 
Salzbrg. S 
S’etseof. 

S. Miitz. 
Smgapr. S 
S'tiagot .. 
Stckhm. C 
Strosbg. C 
Sydney S 
Tangier C 


Y'day 
middav 
•C *F 

20 68 
37 99 
21 70 
26 79 
21 70 

73 73 
17 63 
16 61 

74 75 
25 77 
It 52 

4 39 
23 73 


22 72 

17 B1 
13 55 
.IS 66 

16 61 
IB 61 

22 72 

18 64 

23 73 
12 54 
20 68 

22 72 
26 77 


25 77 
21 70 
20 68 
21 70 
12 54 
14 57 

Helsinki C. 8 46 

H KotHl 5 28 82 ( 

Innsbrk. S 26 79 Tel Aiiv F 

invrnss. C 14 57 Tenerife S. 

i o Man R 10 50{Tokyo C 

Istanbul T 13 55 TV mot F‘ 

Jersey S 18 64;Tums • F’ 

Jo burg C 21 TOjValBnce C 

L Plms. S 22 72 1 Venice S 

LrSben C 17 63 Vienna S- 

locarno f 22 72 1 Warsaw. S - 

London C 22 72i2ur|ch C 

C— Cloudy. F— fair. R— Rain. 5— Sunny. 

T— Thunder. 

f Noon GMT tomporatusas. 


28 82 

14 57 
25 77 
a 7i 
a 68 
28 8 2 

22 72 
21 70 
14 57 
?4 75 
-‘30 88 

23 73 
21 70 
i9 66 
23 73 


THE LEX COLUMN 



war-drums 


The widely- rumoured launch ■ 
of a new price war -by Tesco has 
been unsettling a sector which, 
in terms of gross margins, has 
had life very easy over the. past 
year or two. The group is clos- 
ing its food stores today to pre- 
pare the offensive bur the stock 
market has already taken the 
precautionary measure of mark- 
ing, down share prices in the 
food retailing sector by an 
average of about :6 per cent 
over the last fortnight. - 

The market is unwitting to be 
caught napping again.' It seri- 
ously underestimated the effects 
of Tesco's last price war— 
Operation Checkout in 1977— on 
the Sector’s profitability. Tesco's 
own profits fell ; the following 
year. The climate may now be 
ripe for a limited period of dis- 
counting/ Food price inflation 
has 'been moving upwards to 
meet retail price inflation and* 
the real increases In fixed costs 
— notably fuel charges,, rents 
and rates— should' be less 
severe for retailers this year. . 

But Tesco does not now have 
the leeway to mount a campaign 
along the lines of Operation 
Checkout It no longer has the 
extra gross margin in the shape 
of Green Shield Stamps to give 
to customers. Net trading mar- 
gins of two per cent are less 
Than half those enjoyed by 
Sainsbury and.Asda. Tesco is in 
any case unlikely. >o catch 
Salisbury's prices, which are 
currently estimated to be 31 per 
cent lower than Tesco's. 

Moreover,- with net - debt in 
tile region of £60m and rising, 
due to a heavy capital spending 
programme, Tesco is at a dis- 
advantage against its . relatively 
ungeared competitors. If volume 
gains do not compensate for 
reduced gross margins, , high 
income gearing will show 
through rapidly on the bottom 
line. 

The competitive ^lvironment 
has also become much tougher. ’ 
Tesco can still find vulnerable 
retailers, like the Go-Op and 


International Stores,, but they 
are less prominent ;now than 
they were five years ago. SO 
this week’s push may prove 
stronger on promotion and deep 
discounting of spectfic-.standard - 
lines than oir general price 
competition. By all- accounts, 
Tesco is also planning to .push, 
cheap generic and own-label 
brands. This would do nothing 
to clarify an already' inurkv 
. image,. Last year, Tesco w.-\ 
highlighting qualityTas its great 
strength. . ■••••. 

But, even though the signs 
are pointing to restrained hosti- 
lities, the- market is reserving 
its position. Tesco's share price, 
which began to recover' earlier 
This year, dropped 10 per cent 
last weefc 

It was- ..certainly unfortunate 
that the Tesco rumours co- 
incided. with the news that 
Argyli \ Foods was planning to 
buy Allied Suppliers for £101m. 
The food retailing sector enjoys 
a demanding rating not. -just 
because of its historicr.grdwth 
record and strong . defensive 
qualities. Institutions find it 
difficult to gain sufficient weight 
in an industry which contains 
several . large, unquoted - com- 
panies. On top of that the free 
market capital oF. the- .most 
glamorous stock,' Sainsbury, is 
only half its total issued equity. 

Now the sector ’ is to -’be 
offered £1 Otto of fresh: paper at. 
a time when the dizzy multiples 
of some retailers leave them 
.very - exposed to . a period -of 
portfolio adjustment. The yield 
on Sainsbury's equity is- a- 'tiny- 
2.3 per cent and, the sector as. 
a whole, yields only SX . per- 
cent < . 

Hammerson'. 

- Hammerson shareholders have 
until 1 Thursday - to - decide 
whether to take up their entitle- 
raent To new shares. For the 
company. the ' ■ three-fpr-len 
rights issue has been an un-: 
happy experience. The rights 
were offered with a deep dis- 



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A 

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count at 500p, compared with a 
price for the . u A" shares of 
640p ‘ shortly before The 
announcement. Last Friday, The 
shares closed at' 525p, so the 
underwriters face a. . nail-toting 
few days.' ■; 

The issue appears to have 
been caught up in an instiitu- 
fiohar backlash against a spate 
of. property' rights Issues.' at a 
time When the property market 
is nervous and share prices have 
underperformed. The feeling is 
that .companies have been using 
shareholders as an easy source 
of Cash, regardless of the dilu- 
tion consequences, . when 
interest rates are riding far 
above property yields. 

The irony is that Hammerson 
probably has a stronger’ease for 
isstiing new equity than some 
other property companies which 
have-' recently. -been', tempted., to 
theiharkef. It has outlined. the 
marriage -values which, would 
result- fr.qm its proposed .pur- 
chase" - of minority stakes In 
developments. Ii is not, there- 
fore. merely issuing new paper 
at a discount to; net worth -ahd 
using it to compete for .new 
projects in the open market. 

. Unfortunately, tills theoretical 
rectitude has not been accom- 
panied by detailed figures on 
the extent -to which Hamnrer- 
son’s ■ portfolio would be 
unproved. > . 

The report and accounts 'out 
today , give . tittle further guide- 
ance. . The chairman - makes 
clear- his; reluctance to comply 
next year with : the publication 
of valuations under SSAP is. 
But . ther^ are some pointers to 
.The. y*ay ' property ; companies 
may '’react toT ^xpe&riye , money 
end diminishing ’ bppbrtunkies 
for . rights -issues. ; Hammicrson 
states' that it- will be undertak- 
ing new., dev elqp m entsm ainly in 
a trading capaclty-^oft ett with 
financial partners:- Meanwhile, 
its main emphasis will -be on 
improving the portfolio j! has 
built up in the last three 
decades.. . ; .1 : .. 


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*' Reproduction -of the contents of this newspaper in anr-ioeansr iv-aoi porflMtstf w-thout prior' cOnikAt.pt oiAUalut- 
Begtererea at Kto Post Office Printed by St. Ctemeat'a Praia ior and' pubbar^d .by tha fmiaela? Ug,- 
8 reckon House. Cennon Street. London. JC*P, 4|JV. VOW - 5 TVe Tinanctfl Tane Lt^.-, :